Ohio Lawmaker Proposes Bitcoin Reserve Act HB 703 To Protect State Funds

Key Takeaways

• Ohio Representative Derek Merrin introduced a bill to establish a state-backed Bitcoin reserve.
• Ohio is the third state to propose holding Bitcoin as a treasury asset.
• The concept of Bitcoin reserves has gained momentum after Donald Trump floated the idea of a national Bitcoin reserve.

Ohio has become the latest state to dive into the growing trend of Bitcoin reserves.

State Representative Derek Merrin, a Republican, has proposed legislation to establish a strategic Bitcoin reserve as part of Ohio’s treasury.

A Growing Movement: Ohio Follows Texas and Pennsylvania

Merrin’s House Bill 703 , known as the Ohio Bitcoin Reserve Act, outlines plans to create a dedicated Bitcoin fund within the state treasury.

The bill would authorize the state treasurer to invest in Bitcoin as part of Ohio’s broader asset allocation strategy, aiming to shield public funds from the devaluation of the U.S. dollar.

“The U.S. dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin,” Merrin stated. “Ohio must embrace technology and protect tax dollars from eroding.”

Ohio is the third U.S. state to propose using Bitcoin as a treasury reserve asset, following similar initiatives in Texas and Pennsylvania.

Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act , advocating for Bitcoin as a hedge against dollar volatility.

Representative Mike Cabell from Pennsylvania proposed legislation to allocate up to 10% of the state treasury’s assets in Bitcoin, citing its potential to protect public funds during economic turbulence.

The Case for Bitcoin as a Treasury Hedge

Bitcoin’s potential as a treasury hedging asset has gained significant attention, spearheaded by private sector pioneers like MicroStrategy.

The Fortune 500 company, led by Michael Saylor, has accumulated 439,000 BTC—valued at $45.5 billion—marking an $18 billion profit on its holdings.

MicroStrategy’s bold strategy has inspired public and private entities alike, but it hasn’t been without risks.

Yet, by holding firm, MicroStrategy is now reaping the rewards of Bitcoin’s resurgence.

Unlike companies such as MicroStrategy, which allocate substantial portions of their portfolios to Bitcoin, state treasuries are expected to adopt a more conservative approach.

Proposals typically suggest investing only a small fraction of treasury reserves into Bitcoin, reducing exposure to the asset’s notorious volatility.

A National Trend Fueled by Trump

The concept of Bitcoin reserves gained traction after Donald Trump floated the idea of a national strategic Bitcoin reserve.

As Trump prepares to take office in 2025, several states are looking to align their financial strategies with pro-Bitcoin policies.

While Bitcoin’s volatility remains a concern, proponents believe the asset’s long-term potential outweighs the risks, positioning Bitcoin as a solid tool in public finance.

As Ohio joins the movement, the proposal signals a growing acknowledgment of Bitcoin’s role in reshaping state and national financial strategies.

Whether it becomes a financial mainstay or a volatile experiment, the Bitcoin reserve trend continues to push the boundaries of traditional asset management.