Some committee members expressed concerns about market volatility and the security of the taxpayer money.
COLUMBUS, Ohio — Several Republican state lawmakers are pushing for Ohio to start investing taxpayer money in cryptocurrencies, such as bitcoin.
Rep. Steve Demetriou (R-Bainbridge Twp.) testified Tuesday morning for his new bill to allow the state treasurer to make the investments.
Demetriou says Ohio has much to gain by investing in cryptocurrencies because their market values are growing quickly. According to Bankrate, bitcoin returns for 2024 were 121%.
“Nearly 1.5 million Ohioans own bitcoin,” Demetriou said. “So, it’s clearly something Ohioans are invested in, and I think the state should put its money where its mouth is and follow our constituents and take their lead.”
Demetriou, the primary sponsor of House Bill 18, presented it to the House Technology and Innovation Committee.
The legislation would allow the state treasurer to invest up to 10% of interim funds from the General Revenue Fund and two other funds in digital assets. It does not mandate cryptocurrency investments.
According to the legislation, interim funds are money in the treasury that is not needed to meet current demands, so it can be invested.
The treasurer could only invest in digital assets traded on major stock exchanges, such as the New York Stock Exchange.
Committee members had questions and concerns about crypto market volatility and the security of the taxpayer money.
10TV asked Demetriou how much the bill takes the risks of cryptocurrency into consideration.
“Volatility, just like any asset class, should always be a concern, especially when you’re talking about taxpayer money,” Demetriou said. “Look, we’re not going to be day trading. If this bill passes, I don’t think the treasurer, just like any investments they make, they’re not planning on day trading. This is going to be a long-term asset to unlock value for Ohioans.”
Demetriou also said the investments would be held by a proper custodian, such as a bank or trust company.
The bill also clarifies that state retirement system boards are permitted to make similar investments with pension funds if they choose.
Rep. Erika White (D-Springfield Twp.) has reservations about the possible impact on police officers, firefighters, teachers and others.
“Pensions are what workers have in the state of Ohio when they’re public sector,” White said. “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.”
Tuesday’s hearing was just the first for the bill. Demetriou says he is working with the State Treasurer’s office on possible amendments to the bill and will bring those to the committee when they are ready to be presented.
