Ohio Approves Crypto Payments for State Services

The Ohio State Board of Deposit’s unanimous vote on Wednesday finalized a process that began in April, when Secretary of State Frank LaRose and Ohio Treasurer Robert Sprague first pushed the board to authorize cryptocurrency payments. The initial proposal passed in May, but required final vendor approval, which was granted this week. LaRose, whose office processes hundreds of thousands of transactions annually, cited “growing demand for a cryptocurrency payment option” as a key driver behind the initiative. “I’m excited and ready to be the first to provide it to our customers,” LaRose stated, emphasizing that the move helps position Ohio among the top five states for business by embracing new technologies.

The approval was met with enthusiasm from the crypto industry. Paul Grewal, Chief Legal Officer at Coinbase, tweeted in response, “It’s happening. Government payments in Ohio today. Everything onchain tomorrow.” This sentiment underscores the symbolic importance of a state government formally accepting digital assets like Bitcoin for official transactions, a move that lends legitimacy to the entire sector.

The payment system approval is not an isolated event but a key component of Ohio’s comprehensive strategy to become a leader in the digital economy. This strategy is anchored by the Ohio Blockchain Basics Act, which advanced in the House in June. The legislation prohibits local governments from restricting the use of digital assets and exempts cryptocurrency transactions under $200 from capital gains taxes. Dennis Porter, CEO of the Satoshi Action Fund, described this legislation as “a clear signal” that Ohio lawmakers are “encouraging innovation in the Buckeye State.”

Furthermore, Secretary LaRose is a proponent of House Bill 18, which would establish an Ohio Strategic Crypto Reserve. This reserve would be funded by a portion of state investment earnings, effectively allowing the state treasury to hold Bitcoin as a strategic asset. In testimony supporting the bill, LaRose referenced former President Donald Trump’s Working Group on Digital Asset Markets, which was established with the goal of making America the “crypto capital of the planet.”

Ohio’s actions place it within a significant national trend. According to the Bitcoin Laws tracker, 47 states have now introduced Strategic Bitcoin Reserve (SBR) bills, with approximately 26 states still actively considering proposals. While Ohio’s bills are progressing, states like Arizona, Texas, and New Hampshire are among those that have advanced similar measures the furthest. The movement gained additional momentum this week as Michigan’s previously stalled Bitcoin reserve legislation, House Bill 4087, advanced to the Government Operations Committee after seven months of inaction.

This wave of state-level initiatives represents a bottom-up approach to cryptocurrency regulation and adoption in the United States. In the absence of comprehensive federal legislation, states are taking the lead in creating frameworks that attract crypto businesses and investors. Ohio’s latest move to accept crypto payments for state services, coupled with its supportive legislative agenda, demonstrates a concerted effort to capture a share of the emerging digital economy and signal to job creators that it is open for innovative business.