COLUMBUS, Ohio — An Ohio bill to let the state treasurer invest in cryptocurrency is drawing attention at the Statehouse — but not much enthusiasm from House leadership.
“I do think that we could invest in other things, but I’m still scratching my head over cryptocurrency,” said House Speaker Matt Huffman, a Lima Republican.
House Bill 18, sponsored by Republicans, would expand the treasurer’s power to invest in? what’s called interim funds. Under state law, those are public dollars not needed for daily bills. Since the money is temporarily uncommitted, it can be invested in U.S. Treasury bills, government bonds and money-market funds to earn extra income for the state.
HB 18 would create a “strategic reserve fund” where up to 10% of that money goes into new types of investments, including cryptocurrency.
Zach Prouty, policy director for the Treasurer’s office, told lawmakers the goal is to make the fund a long-term investment pool for Ohio.
“An ideal setup,” he said, “would keep the state’s rainy-day fund available for short-term needs while allowing a separate strategic fund to grow over time.”
The bill also includes safeguards to prevent taxpayer money from being invested in new or speculative coins, according to its sponsor, Rep. Steve Demetriou, a Geauga County Republican. For example, only products with a market value above $750 billion would qualify.
“If we truly want to lead, we have to show our country and the world that we’re ready to put our money where our mouth is,” Demetriou said. Cryptocurrency is “an established and proven asset class that over 1 million Ohioans own.”
House leaders don’t object to diversifying investments, but they’re uneasy about cryptocurrency investment.
Cryptocurrency is a kind of digital money that isn’t issued by any government or bank. Its price depends entirely on what people are willing to pay for it, so its value can rise or fall quickly.
Cincinnati Democrat and House Minority Leader Dani Isaacsohn said the lack of oversight for cryptocurrencies has led to “a lot of people losing their livelihoods and being taken advantage of.”
Huffman struck a similar note. “I think these kinds of risky things, we need to have a long, hard look at those.”
The Speaker went on to tell reporters that HB 18 isn’t a major agenda item despite its recent hearings in the House Technology and Innovation Committee.
“I don’t know that it’s a good idea,” he said. “It’s not a priority.”
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