Ohio, Texas, and Beyond: States Move Toward Establishing Strategic Bitcoin Reserves
The U.S. Dollar faces ongoing inflationary pressures as Donald Trump calls for an end to the debt ceiling. Now, a growing number of U.S. states are contemplating an alternative store of value: Bitcoin. This week, Buckeye State Representative Derek Merrin introduced House Bill 703 “The Ohio Bitcoin Reserve Act” to authorize the state treasury to invest public funds into Bitcoin. Meanwhile, Texas and other states have launched pioneering fiscal measures. Is this signaling a collective shift from traditional public finance in USD to digital assets like BTC in state treasuries?
Ohio’s BTC Reserve Act: A Blueprint for Divesting of the Dollar
Ohio’s House Bill 703 would create a dedicated Bitcoin fund within the state’s treasury, granting the Ohio Treasurer discretion to purchase Bitcoin. “The U.S. Dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation,” said Representative Merrin. His sentiment underscores a growing policy interest in leveraging Bitcoin as a hedge against inflation and an instrument for long-term financial security.
While the current legislative session is winding down, Merrin sees this bill as a framework for ongoing discussions well into 2025. Ohio’s move places it in the company of other states—such as Pennsylvania, Florida, Wisconsin, and Michigan—that are also exploring or have already implemented measures involving Bitcoin reserves or related instruments.
Texas: Introducing a Strategic Bitcoin Reserve
Texas has taken a particularly bold step. The Texas framework extends beyond mere investment—envisioning scenarios where taxes, fees, and even donations to the state could be paid in Bitcoin.
“Establishing a strategic bitcoin reserve would be a win-win for Texas, providing a hedge against inflation while promoting technological progress,” said Rep. Capriglione. Texas, armed with significant energy resources and boasting the highest concentration of Bitcoin miners in the country, is uniquely positioned to benefit from such an arrangement. The proposed legislation dovetails with Texas’s economic ambitions and technological initiatives, potentially even encouraging miners to pay taxes directly in Bitcoin.
A Nationwide Movement Towards USD Alternative
- Pennsylvania: Proposed investing up to 10% of its general funds into Bitcoin.
- Florida: Considering leveraging a portion of its pension fund for a Bitcoin reserve.
- Wisconsin: Has already accumulated millions in Bitcoin-related financial instruments.
- Michigan: Chooses a more conservative route through Bitcoin Exchange-Traded Funds (ETFs).
These state initiatives coincide with a broader dialogue at the federal level. President-elect Donald Trump has discussed plans for a national Bitcoin stockpile, echoing proposals like that of Senator Cynthia Lummis of Wyoming.