Ohio Representative Derek Merrin has introduced a new bill that aims to grant the state treasury the authority to invest in Bitcoin. The proposal, known as House Bill 703, aims to create a Bitcoin fund from the state treasury’s resources. If it passes, it will let the State Treasurer invest public money into Bitcoin at their discretion, giving public money a hedge against inflation and the devaluation of the U.S. dollar.
Ohio Treasurer Could Invest in Bitcoin for Reserves
Ohio’s State Treasurer doesn’t have to invest in any specific Bitcoin under the law. The latter confers the treasurer’s right to decide how and when to invest in Bitcoin. The proposal amends Ohio’s Revised Code and would allow the new section that authorizes the treasurer to explore Bitcoin as a potential asset for the state’s asset allocation strategy.
🚨Today, I filed HB 703 to create the Ohio Bitcoin Reserve within the state treasury!
Provides state treasurer authority & flexibility to invest in #Bitcoin
This legislation creates the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our… pic.twitter.com/hSWas2qeQd
— Derek Merrin (@DerekMerrin) December 17, 2024
Merrin says giving the treasurer the power to invest in Bitcoin will protect the state’s financial reserves. According to him, Bitcoin is a secure alternative to regular assets that can fall prey to inflation and currency devaluation. Merrin said this move will help Ohio make its financial standing stronger and protect public funds.
States Push for Bitcoin Integration in Finances
The adoption of cryptocurrency in Ohio’s Bitcoin bill comes when other states of the U.S. are also beginning to adopt cryptocurrency. Last November, Pennsylvania Representative Mike Cabell introduced a similar proposal, the Pennsylvania Bitcoin Strategic Reserve Act. The purpose of this bill is to make it so that Bitcoin, up to 10% of the state’s reserves, is used as a protection against inflation.
However, interest in Bitcoin has also been explored in Texas. In December 2024, Representative Giovanni Capriglione filed a bill to create a state-run Bitcoin reserve and allow state agencies to accept Bitcoin in return for taxes and fees. These moves on the part of the states are indicating a trend of incorporating Bitcoin in financial infrastructure.
The proposal in Ohio follows a separate proposal by State Senator Niraj Antani. Antani introduced legislation in October 2024, allowing it to let Ohio residents pay taxes and fees using Bitcoin and other cryptocurrencies. These state actions collectively represent a Bitcoin transition from an investment tool to a legitimate payment.
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Corporate Bitcoin Holdings Continue to Grow
This comes from much wider corporate efforts to hold more Bitcoin. Several companies, including MicroStrategy and MARA Holdings, have massively augmented their Bitcoin reserves in recent months. Just last month, MicroStrategy purchased more than 15,000 Bitcoin, bringing its total to more than 440,000 BTC, worth nearly $46 billion at today’s prices.
Another major player, MARA Holdings, also bought 12,000 BTC. The firm funded this acquisition using the proceeds of a convertible bond offering, paying an average of $96,000 per Bitcoin. Raising funds to bolster the companies’ Bitcoin reserves is familiar to Riot Platforms, a Bitcoin mining company.
The trend that we’re seeing, both state governments and corporations, is increasing positive signs of Bitcoin as a financial asset in which they’re confident. On the other hand, the demand for Bitcoin is rising as more entities explore the possibility of it being a hedge against economic instability.
Conclusion
If passed, Representative Derek Merrin’s bill to allow Ohio’s treasury to invest in Bitcoin could be a groundbreaking move towards integrating cryptocurrency within the state’s financial systems. This follows a broader trend of other states embracing Bitcoin as a financial tool and has been taken up by other states. With more and more governments and corporations holding Bitcoins, the digital currency’s role in the global financial landscape will surely increase.
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FAQs
What is House Bill 703 in Ohio?
House Bill 703 aims to allow Ohio’s treasury to invest public funds in Bitcoin.
Does the bill require Ohio’s State Treasurer to invest in Bitcoin?
No, the bill provides the treasurer with the discretion to invest in Bitcoin but does not mandate it.
What is the purpose of allowing Bitcoin investments in Ohio’s treasury?
The proposal aims to hedge against inflation and the devaluation of the U.S. dollar.
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