On January 26th, Ohio’s innovative approach to financial management was highlighted by the introduction of a new legislative proposal for a Bitcoin Strategic Reserve. This initiative, backed by six joint sponsors, seeks to safeguard the state’s financial resources against inflationary pressures while promoting the sustainable growth of its asset portfolio. Key provisions of the bill include the allocation of up to 10% of Ohio’s General Fund, Budget Stabilization Fund, and Reward Trust Fund towards Bitcoin.
The proposed legislation emphasizes the importance of a secure custody framework, permitting Ohio to utilize either self-custody mechanisms or engage qualified custodians to protect its digital assets. Notably, through its technologically neutral language, the bill addresses various digital assets, though its stringent criteria effectively limit participation to Bitcoin, which must demonstrate a market valuation exceeding $750 billion based on a 12-month average. The solid backing from state officials enhances the bill’s prospects for enactment.