Strategic Bitcoin Reserve Bill Introduced By Ohio State Lawmaker

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As a seasoned analyst with over two decades of experience in finance and technology, I find this development intriguing, to say the least. The Ohio Bitcoin Reserve Act is a bold move that signifies an understanding of the potential benefits of cryptocurrencies, particularly Bitcoin, as a strategic asset.

Ohio State Representative Derek Merrin (R-Monclova Township) presented a new bill on December 17, 2024, which allows the state treasury to invest in Bitcoin as part of its investment portfolio. Known as House Bill 703, or the “Ohio Bitcoin Reserve Act,” this legislation aims to create a separate Bitcoin fund within the state treasury, giving the State Treasurer the authority to buy and store Bitcoin. The bill does not compel any specific investment but offers a potential avenue for future investments.

Ohio State Consider Strategic Bitcoin Reserve

Through a post on X (previously known as Twitter), Merrin announced: “Today I submitted HB 703 to establish an Ohio Bitcoin Reserve within the state treasury. This empowers the state treasurer with the authority and flexibility to invest in Bitcoin. By passing this legislation, we’re setting up a structure for Ohio’s government to leverage Bitcoin’s power to bolster our financial standing. As the U.S dollar weakens, Bitcoin offers a means to augment our investment portfolio and safeguard public funds from depreciation.

According to a statement issued by Merrin’s office, the main objectives of the proposed legislation are as follows: “The value of the U.S. Dollar is rapidly decreasing, which warrants our State Treasurer to possess the power and adaptability to invest in Bitcoin when making decisions regarding asset distribution. It is crucial for Ohio to adopt technology and safeguard its tax dollars from depreciation,” Merrin stated.

Merrin’s announcement mentions that he expects the upcoming federal administration (led by President-elect Donald Trump) might examine the possibility of setting up a national Bitcoins (BTC) reserve. This notion is based on past suggestions, such as one put forward by Senator Cynthia Lummis (R-WY). According to Merrin’s comments, similar bills have been proposed in other states like Texas and Pennsylvania, which could suggest a rising interest at both state and federal levels to view Bitcoin as a potential strategic reserve asset.

Bitcoin is transforming the financial landscape and will redefine global economies. It’s crucial that we have a reliable form of currency, similar to digital property ownership for those who possess it. This proposed legislation lays the groundwork for Ohio’s state administration to leverage Bitcoin to bolster our financial standing. This was expressed by Merrin in his press statement.

Andrew Burchwell, Executive Director of the Ohio Blockchain Council, voiced his approval. “Governments globally are contemplating Bitcoin investment as a strategic reserve asset, such as the US federal government and states like Texas, Pennsylvania, and Florida. I commend Representative Merrin for presenting this bill to establish Ohio as a pioneer in innovation and technology. I am eager to collaborate with the legislature in 2025 to capitalize on this opportunity and ensure that Ohio maximizes its potential in this area.

House Bill 703 has been proposed mere two weeks before the conclusion of the 135th General Assembly, set to adjourn on December 31, 2024. Given that the current session is drawing to a close, this bill is expected to provide a blueprint for the upcoming legislative session commencing on January 6, 2025. According to Ohio law, any bills not passed before the end of a term must be reintroduced during the subsequent one.

Ohio is on track to join the ranks of three U.S. states that are setting up Strategic Bitcoin Reserves (SBR), following the lead of Texas and Pennsylvania. In fact, Pennsylvania has gone as far as proposing its own SBR Act in November, with potential investments of up to 10% of its General Fund in Bitcoin. Texas, on the other hand, has taken a more gradual approach, introducing a bill last week that would enable donations and potentially taxes to be paid in Bitcoin, which must then be held for at least five years.

Florida is poised to initiate its own State Blockchain Network (SBR) by the first quarter of 2025, with backing from pro-Bitcoin officials and endorsement from the Florida Blockchain Business Association (FBBA).

Instead, Michigan and Wisconsin have chosen a more traditional, or conservative, path, with their main focus being Bitcoin-centric Exchange Traded Funds (ETFs) and trusts. Importantly, the Wisconsin Investment Board made history as the first state pension fund to purchase Bitcoin ETFs back in May of this year.

At press time, BTC traded at $103,987.

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2024-12-18 12:42