Vivek Ramaswamy backs Ohio’s new strategic Bitcoin reserve

By Crypto Gloom On Jan 26, 2025

Key Takeaways

Ohio’s strategic crypto sanctuary bill would allow up to 10% investment in state funds in digital assets.
Only Bitcoin meets Bill’s market capitalization threshold, ensuring limited initial investment options.

Former presidential candidate Vivek Ramaswamy praised Ohio’s new strategic encryption reserve bill as strong and thoughtful.

House Bill No. introduced by State Representative Steve Demetriou and sponsored by six co-sponsors. The bill, known as 18, would allow the state treasurer to invest up to 10% of the state’s General Assembly funds, the Budget Stabilization Fund, and the Award Trust Fund. Reserves of digital assets, including Bitcoin.

Demetriou said the move was necessary to protect the country’s finances from the corrosive effects of inflation. Investing in digital assets like Bitcoin can help Ohioans diversify their holdings and hedge against economic uncertainty.

“Allowing the option to invest in strategic Bitcoin reserves allows us to hedge against inflation and keep Ohio on the cutting edge of monetary and technological innovation,” Demetriou said.

Instead of explicitly mentioning “Bitcoin,” Ohio’s new proposed bill adopts the term “digital asset.” According to Dennis Porter, CEO and co-founder of the Satoshi Action Fund, this approach allows Ohio to remain technology neutral and avoid potential political friction.

The bill sets strict standards for crypto investments, requiring them to be exchange-traded products with an average market capitalization of more than $75 billion over the past 12 months.

Currently, only Bitcoin, with a market cap of around $2 trillion, meets this requirement. However, the bill’s language allows other digital assets to become eligible in the future once they reach this market capitalization threshold.

“The average market capitalization of digital assets over the past 12 months, as determined by the State Treasurer using commercially reasonable methods, is at least $7.4 billion,” the bill states.

The bill also sets strict requirements for secure custody solutions if states choose to hold digital assets directly. Alternatively, the state could utilize a qualified custodian, such as a bank or trust company, or invest through a regulated investment company.

If passed, this bill would represent a major step for Ohio in accepting state funds as potential investment vehicles for state funds and retirement systems.

This represents Ohio’s second attempt at a Bitcoin sanctuary bill, following House Bill 703, a bid for the “Ohio Bitcoin Reserve,” introduced by House Republican Leader Derek Merrin last month. According to Porter, 11 states have joined the Bitcoin primary race as of January 23.

This comes after President Donald Trump signed a crypto-focused executive order mandating the creation of a working group to develop a federal regulatory framework for digital assets, including stablecoins, and to evaluate the establishment of national digital assets. reserve.

Ramaswamy, who recently stepped down as co-head of the Office of Government Effectiveness (DOGE), is expected to announce his bid for Ohio governor next week, sources familiar with the matter told Politico.