Overview of Recent Legislation in Ohio
In a significant move that could reshape Ohio’s financial landscape, the state House recently passed House Bill 116, which alleviates certain minor tax obligations for cryptocurrency owners. Republican Representative Steve Demetriou of Ohio believes that the next logical development in this evolving landscape is the establishment of a state-controlled Bitcoin reserve.
Ohio Strategic Cryptocurrency Reserve Act
This ambition is further outlined in another legislative effort, House Bill 18, also referred to as the Ohio Strategic Cryptocurrency Reserve Act. This proposal would authorize the state treasurer to allocate up to 10% of designated public funds into high-capitalization cryptocurrencies.
“I am the sponsor of House Bill 18, which is still undergoing committee review,” Demetriou told Decrypt in a recent interview.
He emphasized that this initiative represents a critical step toward advancing legislation on digital assets.
Investment Guidelines and Focus
House Bill 18 was introduced earlier this year and, like its counterpart, does not explicitly mention Bitcoin. However, it includes a requirement that permits investments only in exchange-traded digital assets with a minimum average market capitalization of $750 billion, effectively designating Bitcoin, which boasts a market cap exceeding $2 trillion, as the only current candidate.
Demetriou remains hopeful about Bitcoin’s potential in Ohio but recognizes the necessity for increased advocacy and public understanding of its implications.
“The future remains unpredictable as the bill progresses, but I am committed to pursuing it for as long as I hold office,”
he affirmed.
Blockchain Basics Act and Compliance Reduction
Meanwhile, the Ohio Senate is currently reviewing the Blockchain Basics Act, HB 116, aimed at codifying rules surrounding blockchain technology and digital assets while reducing compliance burdens for both cryptocurrency miners and users. For Demetriou and his allies, this legislation forms a critical foundation that could position Ohio as a frontrunner in digital finance and pave the way for a state-run Bitcoin reserve.
Broad Focus of Legislation
Nevertheless, Demetriou has clarified that the focus of HB 116 is broader than just Bitcoin, stating,
“We aim to avoid creating legislation that favors certain assets over others.”
He emphasized that the bill addresses various aspects of digital assets, blockchain technology, and related definitions within the Ohio Revised Code. Its primary aim is to shield owners of digital assets from excessive compliance burdens, particularly for smaller transactions.
Public Awareness and Economic Impact
The fate of HB 116 now lies in the hands of the Ohio Senate, with Demetriou expressing optimism about its potential passage and subsequent signature by Governor DeWine. He highlighted the growing demand for education regarding digital assets, stating,
“Since I began advocating for cryptocurrency legislation in the House, it has become evident that public awareness is vital for understanding the role of digital assets in our economy.”
Reflecting on the national trend of increasing cryptocurrency adoption, Demetriou insisted that lawmakers must align with public sentiment.
“Nearly 2 million individuals in Ohio possess digital assets, and it’s essential for us to heed their perspective. These assets are not a passing trend; they represent a vital component of our economic future,”
he remarked.
“It is time for us to accept that reality and take guidance from our constituents. The voice of the people is clear.”
