Ohio’s Bold Crypto Strategy Sets the State Apart as a Pioneer in National Innovation

Ohio’s decision to allow cryptocurrency payments for state-related services represents a major advancement in the integration of digital currencies into government finance, potentially paving the way for a wider

reserve program. On September 25, 2025, the Ohio State Board of Deposit selected a provider to handle crypto payments, including Bitcoin, after months of legislative work led by Secretary of State Frank LaRose and State Treasurer Robert Sprague. This move allows Ohio residents to use cryptocurrencies to pay state fees and services, making Ohio a trailblazer in utilizing blockchain technology within government functions Ohio Approves Bitcoin Payments for State Services [ 1 ]. LaRose highlighted that this step aligns with Ohio’s pro-business image, remarking, “We are open to adopting innovative tools and technologies that drive investment and economic growth” Ohio Approves Bitcoin Payments for State Services [ 1 ].

This initiative is part of a larger legislative effort to make digital assets mainstream in Ohio. In June 2025, the Ohio House approved the Ohio Blockchain Basics Act (House Bill 116), which blocks local governments from limiting crypto usage and exempts transactions below $200 from capital gains tax reporting. The legislation also clarifies that activities like crypto mining, staking, and exchanges do not require a money transmitter license, lowering regulatory hurdles for businesses. These actions are designed to encourage innovation while ensuring accessibility and compliance, especially for smaller participants.

In parallel, House Bill 18, introduced by LaRose, aims to create an Ohio Strategic Crypto Reserve (OSCR). This reserve would be funded by a share of the state’s investment returns and could include Bitcoin as part of its assets. Although no official timeline has been set for launching the reserve, LaRose describes it as a forward-thinking step to diversify Ohio’s financial holdings. This proposal mirrors a national movement: by September 2025, 47 U.S. states had introduced Strategic Bitcoin Reserve (SBR) bills, with 26 still under consideration. Arizona, Texas, and New Hampshire are leading in passing such legislation, while Michigan recently revived its previously stalled SBR bill (House Bill 4087) after a period of inactivity Ohio Approves Bitcoin Payments for State Services [ 1 ].

The adoption of crypto across the country remains inconsistent. While Ohio is taking a proactive approach, other states encounter regulatory and political obstacles. For example, California and New York, despite their strong tech sectors, have yet to pass SBR bills, citing worries about market volatility and regulatory oversight. On the other hand, states like Texas and Florida, which do not impose personal income taxes, have become attractive destinations for crypto businesses and investors seeking tax advantages. Ohio’s strategy, which combines tax benefits with clear regulations, may serve as a blueprint for states aiming to balance innovation with fiscal responsibility.

The response from the industry underscores the significance of Ohio’s policies. Paul Grewal, Chief Legal Officer at Coinbase, commended the initiative as progress toward “everything on-chain tomorrow,” reflecting optimism about Ohio’s commitment to blockchain technology Ohio Approves Bitcoin Payments for State Services [ 1 ]. However, some critics warn that the absence of comprehensive federal regulations could complicate state-level efforts. For instance, recent federal enforcement actions against crypto firms for securities violations highlight the importance of aligning state and federal policies.

Ohio’s move to accept crypto payments and consider a Bitcoin reserve demonstrates its intent to lead in digital asset adoption. With nearly half of U.S. states now exploring SBR legislation, Ohio’s actions could shape national discussions on the role of cryptocurrencies in public finance. As LaRose stated, this initiative shows Ohio’s willingness to “adopt the tools, trends, and technologies that attract job creators to our state” Ohio Approves Bitcoin Payments for State Services [ 1 ]. The ultimate success of these efforts will depend on finding the right balance between fostering innovation and maintaining regulatory safeguards, a central challenge in the evolving world of crypto.