- House Bill 18 mandates Ohio to invest 10% of state funds in a cryptocurrency reserve, including Bitcoin.
- The bill enforces strict eligibility, requiring assets to maintain a $750 billion average market cap over 12 months.
- Ohio’s proposal aims to hedge inflation risks and aligns with global trends in digital asset adoption and innovation.
Ohio has introduced House Bill 18, a proposal that mandates the creation of a cryptocurrency reserve. Spearheaded by State Representative Steve Demetriou and six co-sponsors, the bill aims to allocate 10% of the state’s general fund, prizes trust fund, and budget stabilization fund into a strategic cryptocurrency reserve.
Key Details of the Bitcoin Reserve Bill
House Bill 18 requires the inclusion of digital assets, such as Bitcoin, in the state’s reserve portfolio. A condition mandates that any chosen digital asset must have maintained an average market capitalization of at least $750 billion over the preceding year. BTC, currently valued at around $2 trillion, easily meets this benchmark. The proposal does not limit its scope to Bitcoin alone, allowing other eligible assets to be considered in the future.
Ohio’s bill also enforces stringent security measures for custody solutions. The state treasurer is authorized to use banks, trust companies, or regulated investment services to safeguarding digital assets. These measures aim to ensure the safe management of state-held cryptocurrencies, whether directly held or through third-party custody services.
Strategic Objectives and Broader Implications
According to Demetriou, the bill focuses on protecting state funds from inflation and driving innovation in monetary technology. Co-sponsors emphasize that the initiative aligns with global trends favoring digital asset adoption. Dennis Porter, CEO of Satoshi Action Fund, noted that the bill strategically avoids naming Bitcoin explicitly to maintain neutrality and avoid political friction.
The proposal marks Ohio’s second attempt at creating a cryptocurrency reserve. Last month, House Bill 703 sought to establish a Bitcoin Reserve for the state. Eleven states are currently exploring similar initiatives, reflecting the growing adoption of digital assets in government portfolios.
The introduction of House Bill 18 follows an executive order by the United States President establishing a working group on digital asset regulation. The group is tasked with exploring stablecoins and a national digital asset reserve. If passed, Ohio’s bill could serve as a model for other states seeking to integrate cryptocurrencies into their financial strategies.
