- Ohio lawmakers propose legislation allowing up to 10% of state interim funds to be invested in cryptocurrencies.
- Bitcoin showed 121% returns in 2024, driving interest in state-level crypto investments.
- Approximately 1.5 million Ohioans currently own bitcoin, indicating significant constituent involvement.
- The bill includes provisions for pension fund investments, raising concerns about public sector retirement security.
- Proposed investments would be restricted to digital assets traded on major exchanges like NYSE.
Ohio legislators are pushing forward with groundbreaking legislation that could make the state one of the first to invest public funds in cryptocurrencies. Rep. Steve Demetriou introduced House Bill 18, which would authorize the state treasurer to allocate up to 10% of interim funds into digital assets, marking a significant shift in public fund management strategy.
The proposal comes amid surging cryptocurrency valuations, with bitcoin posting impressive returns of 121% in 2024 according to Bankrate. “Nearly 1.5 million Ohioans own bitcoin,” noted Demetriou during his testimony to the House Technology and Innovation Committee, emphasizing constituent alignment with the initiative.
The legislation specifically targets “interim funds” – defined as treasury money not required for immediate state obligations. These investments would be restricted to digital assets traded on established platforms like the New York Stock Exchange, providing an institutional-grade safety framework for public funds.
Security measures outlined in the bill include mandatory custody arrangements through qualified financial institutions. “We’re not going to be day trading… This is going to be a long-term asset to unlock value for Ohioans,” Demetriou explained, addressing volatility concerns.
However, the proposal faces scrutiny from lawmakers like Rep. Erika White, who expressed particular concern about the bill’s provisions regarding pension funds. “There’s no Social Security. So, we just have to be very careful with something so volatile that could end people’s retirement or their chances to retire,” she cautioned, highlighting the unique vulnerability of Ohio’s public sector workers who rely exclusively on state pensions.
The State Treasurer’s office is currently collaborating with Demetriou on potential amendments to strengthen the legislation’s safeguards. This initiative follows similar discussions in other states about incorporating cryptocurrency investments into public fund management, though Ohio’s approach would represent one of the most comprehensive frameworks proposed to date.
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