Emily Walker
In an important move concerning regulatory changes in the United States, Ohio has presented a new bill aimed at creating a Strategic Bitcoin Reserve.
Led by Majority Whip Steve Demetriou, with support from six co-sponsors, this legislation intends to boost the state’s treasury reserves by permitting investments in Bitcoin.
Ohio’s Strategic Bitcoin Reserve Initiative
The proposed bill allows Ohio to invest up to 10% of its general fund, budget stabilization fund, and prizes trust fund in Bitcoin. This initiative is viewed as a proactive measure against increasing inflation and the search for innovative financial solutions.
Market analyst Dennis Porter, founder of the Satoshi Action Fund, has voiced strong support for the bill, noting its potential to protect taxpayer money in Ohio.
Highlighted aspects of the proposal include strong custody measures that require either self-custody or the use of a qualified custodian to ensure the safety of state investments.
The legislation takes a technology-neutral approach by referring to “digital assets,” which helps to reduce political disputes and allows for quicker actions to maintain the purchasing power of state resources.
Importantly, the bill specifies that only Bitcoin can qualify for this reserve, requiring a market capitalization of at least $750 billion and an average valuation over the previous 12 months, thus setting high standards. Demonstrating his commitment, Demetriou commented on social media:
I’m proud to have introduced this bill that will ideally protect the tax dollars of Ohio residents. By investing in a strategic Bitcoin reserve, we can counter inflation and position Ohio at the forefront of financial and technological advancements.
Trump’s Executive Action on Cryptocurrency
This legislative initiative aligns with a wider federal movement toward cryptocurrency acceptance. Recently, President Donald Trump signed an executive order targeting the defense and advancement of digital assets.
The executive order ensures that cryptocurrency companies can access banking services, addressing concerns that regulators were pressuring banks to cut ties with these entities.
Additionally, the order prohibits the establishment of central bank digital currencies (CBDCs) in the US, which could rival existing cryptocurrencies.
In a significant regulatory change, the US Securities and Exchange Commission (SEC) has retracted previous accounting guidelines that limited companies from securely holding crypto assets for third parties.
These regulatory changes are anticipated to encourage the widespread use of digital assets by simplifying processes for businesses in the crypto industry.
On the campaign trail, Trump has branded himself a “crypto president,” expressing his commitment to supporting the integration of digital assets, a marked departure from former President Joe Biden’s regulatory stance, which has seen legal actions against major platforms like Coinbase and Binance for alleged law violations.
Currently, Bitcoin’s price is approximately $105,690, showing a minor decline of 0.3% in the last 24 hours and 0.7% over the past week.
Image courtesy of DALL-E, chart provided by TradingView.com.