Ohio House Speaker skeptical of bill allowing state cryptocurrency investments

COLUMBUS, Ohio — An Ohio bill to let the state treasurer put money into cryptocurrency is drawing consideration on the Statehouse — however not a lot enthusiasm from House management.

“I do assume that we might put money into different issues, however I’m nonetheless scratching my head over cryptocurrency,” mentioned House Speaker Matt Huffman, a Lima Republican.

House Bill 18, sponsored by Republicans, would broaden the treasurer’s energy to put money into? what’s known as interim funds. Beneath state regulation, these are public {dollars} not wanted for each day payments. Because the cash is quickly uncommitted, it may be invested in U.S. Treasury payments, authorities bonds and money-market funds to earn further earnings for the state.

HB 18 would create a “strategic reserve fund” the place as much as 10% of that cash goes into new varieties of investments, together with cryptocurrency.

Zach Prouty, coverage director for the Treasurer’s workplace, informed lawmakers the objective is to make the fund a long-term funding pool for Ohio.

“A really perfect setup,” he mentioned, “would preserve the state’s rainy-day fund out there for short-term wants whereas allowing a separate strategic fund to develop over time.”

The bill additionally consists of safeguards to forestall taxpayer cash from being invested in new or speculative cash, in accordance with its sponsor, Rep. Steve Demetriou, a Geauga County Republican. For instance, solely merchandise with a market worth above $750 billion would qualify.

“If we actually need to lead, we now have to indicate our nation and the world that we’re able to put our cash the place our mouth is,” Demetriou mentioned. Cryptocurrency is “a longtime and confirmed asset class that over 1 million Ohioans personal.”

House leaders don’t object to diversifying investments, however they’re uneasy about cryptocurrency funding.

Cryptocurrency is a form of digital cash that isn’t issued by any authorities or financial institution. Its value relies upon solely on what persons are keen to pay for it, so its worth can rise or fall shortly.

Cincinnati Democrat and House Minority Chief Dani Isaacsohn mentioned the dearth of oversight for cryptocurrencies has led to “so much of folks shedding their livelihoods and being taken benefit of.”

Huffman struck an identical be aware. “I believe these sorts of dangerous issues, we have to have an extended, exhausting have a look at these.”

The Speaker went on to inform reporters that HB 18 isn’t a serious agenda merchandise regardless of its latest hearings within the House Know-how and Innovation Committee.

“I don’t know that it’s a good suggestion,” he mentioned. “It’s not a precedence.”