Ohio may soon become one of the first states to invest public funds in cryptocurrency, as legislators debate House Bill 18—the Ohio Strategic Cryptocurrency Reserve Act.
This proposal will allow state government and retirement systems to invest in digital assets and related exchange-traded products.
Preparing for State Cryptocurrency Investments
House Bill 18 (HB 18), introduced by Representative Steve Demetriou, is attracting attention for its practical steps to integrate digital assets into the state's investment portfolio.
Importantly, the bill avoids designating any specific cryptocurrency—such as Bitcoin—to keep investment options flexible. If passed, the Ohio State Treasurer will oversee these updated investment strategies, providing the state with a modern financial approach.
The latest developments occurred when the Ohio House recently passed House Bill 116. The bill, named the Ohio Blockchain Basics Act, received a decisive vote of 68 to 26, showing strong bipartisan support. The law exempts capital gains tax for crypto transactions under $200 in Ohio.
Supporters believe HB 18 could lead to stronger profits and better portfolio diversification for Ohio. By not naming specific coins or trading products, future investments may include a range of digital assets, all subject to market analysis and risk management.
Oversight, Transparency, and Legal Framework
The bill designates the Ohio State Treasurer as the manager of potential cryptocurrency investments. State retirement systems can also participate in the program, after conducting their own risk assessments and internal approvals.
Currently, House Bill 18 does not include official financial notes or state-issued financial analysis. Therefore, questions remain about the amount of public funds that could be used. Oversight rules and transparency requirements are expected to be introduced before any final vote.
"A state Bitcoin reserve could diversify Ohio's assets, reduce dependence on fiat currency, and signal crypto acceptance," a user commented on X.
Institutional interest in cryptocurrency is increasing, as reflected in the bill, with officials seeking a balanced approach to investment and risk. However, the debate is ongoing, and legislative scrutiny will shape the bill's future.
If enacted, House Bill 18 could give Ohio a pioneering role in state-level crypto investment, creating an example for other states.
