Ohio Leads with Strategic Bitcoin Reserve to Diversify State Funds

• Ohio’s Bitcoin reserve bill aims to shield state funds from inflation and drive innovation in digital asset investment.
• With strict market cap criteria, Ohio’s legislation ensures only stable digital assets like Bitcoin qualify for state investments.
• Neutral language in Ohio’s crypto bill fosters bipartisan support while setting strict safeguards for secure digital asset custody.

State Representative Steve Demetriou introduced Ohio House Bill No. 18, which has six co-sponsors and aims to diversify Ohio’s investment portfolio while protecting state funds from inflation by allocating up to 10% of the state’s general fund and other reserves to digital assets.

Besides its ambitious scope, the bill sets clear criteria for digital asset investments. It requires that eligible assets have a market capitalization of at least $750 billion during the previous year. Only one cryptocurrency currently meets that threshold: Bitcoin, with a market cap of roughly $2 trillion. This makes Ohio an outright leader in the use of digital assets to advance economic stability.

Balancing Innovation and Neutrality

The proposed legislation takes a neutral stance by using the term “digital asset” instead of explicitly naming Bitcoin. This approach ensures technological neutrality and avoids political friction. Dennis Porter, CEO of the Satoshi Action Fund, highlighted this as a critical move toward broader acceptance.

Moreover, the bill outlines stringent custody requirements for holding digital assets. Ohio can use secure custody solutions, qualified custodians, or invest through regulated companies. This ensures high standards of safety and transparency while enabling innovative financial practices.

Broader Implications for the Crypto Industry

Ohio’s legislation coincides with national developments in cryptocurrency regulation. Former President Donald Trump recently issued an executive order promoting digital assets while banning central bank digital currencies (CBDCs). The order aims to prevent regulatory bias against cryptocurrency companies and ensure they access banking services.

Additionally, the SEC rescinded restrictive accounting guidelines, making it easier for firms to safeguard third-party crypto assets. These changes signal a shift in regulatory dynamics, paving the way for mainstream cryptocurrency adoption.