Ohio Advancing Digital Asset Legislation

After the Ohio House passed House Bill 116 last week, which exempts crypto owners from minor tax burdens, Rep. Steve Demetriou (R-Ohio) announced plans to establish a state Bitcoin reserve.

Another proposed bill, House Bill 18, known as the Ohio Strategic Cryptocurrency Reserve Act, would allow the state treasurer to invest up to 10% of certain public funds in “high-capitalization” cryptocurrencies.

Demetriou commented on the necessity for House Bill 18, which is still in committee, stating, “That’s the next step in my mind—and in many advocates’ minds—for advancing digital asset legislation.” Introduced in February, HB 18, similar to HB 116, does not specifically mention Bitcoin. However, it includes a provision stipulating that the treasurer may only invest in digital assets that are exchange-traded products with an average market capitalization of at least $750 billion. Currently, Bitcoin is the only eligible asset, boasting a market cap of over $2 trillion.

Expressing optimism about Bitcoin’s future in Ohio, Demetriou acknowledged the need for greater advocacy and public education. “It’s still hard to predict how things will go, but I’m not giving up,” he asserted. “I’ll keep reintroducing it if needed, as long as I’m in the legislature.”

HB 116, now navigating through the Ohio Senate, seeks to formalize regulations surrounding blockchain and digital assets. The purpose is to ease regulatory burdens on cryptocurrency miners and users. For Demetriou and other supporters, this bill marks a foundational step toward positioning Ohio as a leader in digital finance, paving the way for a state Bitcoin reserve.

While aiming for a Bitcoin reserve, Demetriou clarified the bill’s focus on “digital assets” rather than Bitcoin exclusively. “I don’t think we want to pick winners and losers in our legislation,” he stated. HB 116, introduced in February, seeks to shield digital asset owners from burdensome compliance requirements, especially for smaller transactions. “This was a broader bill to get the wheels turning and allow future legislatures to create sensible regulations,” he emphasized.

Although the fate of HB 116 remains uncertain, Demetriou is hopeful for its approval and enactment into law. “Since I began introducing crypto and digital asset legislation in the House, there’s been a real need for education on their importance to our economy’s future,” he said. He expressed enthusiasm about his colleagues recognizing this reality and pushing for the bill’s progress.

When discussing the increasing acceptance of cryptocurrency in the U.S., Demetriou insisted that the government needs to align with public sentiment. “Nearly 2 million Ohioans own digital assets. We need to follow their lead—they’ve shown us this isn’t going anywhere,” he stated. “These assets are essential to our economic future.

Demetriou concluded, saying, “The people have spoken.”

Edited by Andrew Hayward