Ohio has become a focal point with its newly proposed bill to create a Bitcoin fund within the state treasury.
The Ohio Bitcoin Reserve Act
Introduced in December 2024, the Ohio Bitcoin Reserve Act is intended to give the state treasurer the authority to purchase Bitcoin as part of the asset allocation strategy. While it does not mandate Bitcoin purchases, it provides the flexibility to consider it when making investment decisions.
The Bill's Provisions and Potential Impact
The bill amends sections of Ohio's Revised Code to create a dedicated Bitcoin fund within the state treasury without any compulsory purchases. This provides discretion in deciding if and when to invest in Bitcoin. This approach could strengthen Ohio's financial portfolio and protect public funds from inflation. A national Bitcoin reserve program could emerge in the future, as proposed by Senator Cynthia Lummis of Wyoming.
A Growing Trend Across the U.S.
Ohio's push for a Bitcoin fund is part of a broader trend across the U.S. In November 2024, Pennsylvania introduced the Bitcoin Strategic Reserve Act to allocate up to 10% of its treasury in Bitcoin. In December, Texas joined with a proposal for a strategic Bitcoin reserve. As more states add Bitcoin to their portfolios, this could lead to increased corporate adoption of digital assets and strengthen Bitcoin's position in the financial system.
Incorporating Bitcoin into the treasury could offer Ohio an alternative asset class and signal broader acceptance of digital assets in global finance.
