In a major development amid evolving regulatory landscapes in the US, Ohio has introduced a bill geared toward establishing a Strategic Bitcoin Reserve.
Spearheaded by Majority Whip Steve Demetriou and supported by six co-sponsors, the laws seeks to reinforce the state’s treasury reserves by allowing the allocation of funds into Bitcoin.
Ohio Bill Proposes Strategic Bitcoin Reserve
The bill proposes that Ohio can invest as much as 10% of its general fund, budget stabilization fund, and prizes trust fund into Bitcoin. This move is seen as a proactive response to rising inflation and the necessity for revolutionary financial strategies.
Market expert Dennis Porter, founding father of the Satoshi Motion Fund, expressed strong support for the bill, highlighting its potential to safeguard Ohio residents’ tax dollars.
Key features of the proposed laws include robust custody solutions that mandate either self-custody or using a professional custodian, ensuring the safety of the state’s investments.
The bill adopts a technology-neutral stance by referring to “digital assets,” thereby minimizing political friction and facilitating quicker motion to guard the purchasing power of state funds.
Notably, the proposal stipulates that only Bitcoin qualifies for the reserve, requiring a market capitalization of $750 billion and an average valuation over the preceding 12 months, thereby imposing stringent qualifications. Demetriou emphasized the importance of this initiative, stating on social media:
Proud to have introduced a bill that can protect Ohio residents’ tax dollars. By allowing an option to take a position in a strategic Bitcoin reserve, we are able to hedge against inflation and keep Ohio on the leading edge of monetary and technological innovation.
Trump’s Executive Order
This legislative effort coincides with a broader push for cryptocurrency acceptance on the federal level. Recently, President Donald Trump issued a comprehensive executive order specializing in the protection and promotion of digital assets.
The order goals to be sure that banking services remain accessible to cryptocurrency corporations, countering claims that regulators have pressured banks to sever ties with these businesses.
Furthermore, the manager order banned the creation of central bank digital currencies (CBDCs) within the US, which could compete with existing cryptocurrencies.
In a notable shift, the US Securities and Exchange Commission (SEC) has also rescinded accounting guidance that had previously hindered corporations from safeguarding crypto assets for third parties.
Such regulatory adjustments are expected to advertise greater adoption of digital assets by reducing operational complexities for firms involved within the crypto space.
On the campaign trail, Trump positioned himself as a “crypto president,” pledging support for the adoption of digital assets, a stark contrast to the regulatory approach taken by former President Joe Biden’s administration, which has pursued legal actions against major exchanges like Coinbase and Binance for alleged non-compliance with US laws.
On the time of writing, Bitcoin is hovering across the $105,690 mark, reflecting slight decreases of 0.3% over the past 24 hours and 0.7% over the past week.
Featured image from DALL-E, chart from TradingView.com