In an important development amid the evolving regulatory landscape in the United States, the state of Ohio has introduced a bill aimed at creating a strategic reserve for Bitcoin.
Led by Majority Whip Steve Demetriou and supported by six co-sponsors, the legislation seeks to boost the state’s treasury reserves by allowing funds to be allocated into Bitcoin.
Ohio bill proposes a strategic reserve for Bitcoin
the invoice It suggests that Ohio could invest up to 10% of its general fund, budget stabilization fund, and trust award fund in Bitcoin. The move is seen as a proactive response to rising inflation and the need for innovative financial strategies.
Market expert Dennis Porter, founder of the Satoshi Action Fund, expressed strong support for the bill, highlighting its ability to protect Ohioans’ tax dollars.
Key features of the proposed legislation include strong custody solutions that mandate either self-custody or the use of a qualified guardian, ensuring the security of the state. Investments.
The draft law adopts a technology-neutral stance by referring to “digital assets,” thus reducing political friction and facilitating faster action to protect the purchasing power of state funds.
Notably, the proposal stipulates that only Bitcoin is eligible for reserve, which would require a market capitalization of $750 billion and Average rating over the previous 12 months, thus imposing strict qualifications. Demetriou stressed the importance of this initiative, saying on social media:
Proud to introduce a bill that will protect Ohioans’ tax dollars. By allowing the option to invest in the Bitcoin Strategic Reserve, we can hedge against inflation and keep Ohio at the forefront of monetary and technological innovation.
Trump’s executive order
This legislative effort coincides with a broader push to accept cryptocurrencies at the federal level. Most recently, President Donald Trump Issued A comprehensive executive order focused on protecting and promoting digital assets.
The order aims to ensure that banking services remain accessible to cryptocurrency companies, to counter allegations that regulators have pressured banks to cut ties with these companies.
Furthermore, the executive order banned the creation of central bank digital currencies (CBDCs) in the United States, which could compete with existing cryptocurrencies.
In a notable reversal, the US Securities and Exchange Commission (SEC) also rescinded accounting guidelines that had previously hindered companies from protecting third-party cryptocurrency assets.
Such regulatory amendments are expected to further enhance the adoption of digital assets by reducing operational complexities for companies operating in the cryptocurrency space.
During the election campaign, Trump presented himself as a “crypto president,” pledging support for cryptocurrency Adoption of digital assetsThis is in stark contrast to the regulatory approach taken by former President Joe Biden’s administration, which took legal action against major exchanges such as Coinbase and Binance over their alleged non-compliance with US laws.
At the time of writing, Bitcoin is hovering around the $105,690 level, reflecting a slight decline of 0.3% over the past 24 hours and 0.7% over the past week.
Featured image of DALL-E, chart from TradingView.com
