Ohio Senator Introduces Bill to Create State’s Bitcoin Reserve Fund

Ohio Senator Sandra O’Brien has introduced a second bill aimed at allowing the state to invest in Bitcoin, establishing a dedicated "Ohio Bitcoin Reserve Fund." The proposal, Ohio Senate Bill 57 (SB 57), was referred to the Financial Institutions, Insurance, and Technology Committee on January 29. If passed, the bill would empower the state's treasurer to invest in Bitcoin exclusively, setting the foundation for Ohio to become a leader in cryptocurrency adoption.

A Focus on Bitcoin

Unlike other cryptocurrency-focused initiatives, SB 57 limits the state’s investments to Bitcoin (BTC), excluding other cryptocurrencies. The bill mandates that any Bitcoin purchased must be held for a minimum of five years, emphasizing long-term investment strategies. Additionally, secure custody solutions would be required to safely store the digital asset, ensuring its protection from potential theft or market fluctuations.

Senator O’Brien, who introduced the bill on January 28, stated that "crypto is here, and Ohio needs to be a leader." She also referenced former President Donald Trump's recent actions to show the state’s proactive stance. "Crypto will be a major part of President Trump’s term," O'Brien noted, adding that Ohio would be prepared when the President’s working group on crypto issues releases its recommendations. On January 23, Trump signed an executive order establishing a crypto working group tasked with evaluating the potential creation of a “national digital asset stockpile.”

Expanding Use of Crypto in Government Payments

In addition to the Bitcoin investment reserve, SB 57 also outlines provisions for the state to accept cryptocurrency for government payments, including taxes, fees, fines, and other charges. The bill specifies that any cryptocurrency received by state agencies must be converted into Bitcoin and transferred to the reserve, further supporting the fund's growth.

The bill also creates a framework allowing Ohio residents, state agencies, and universities to donate Bitcoin to the reserve, with an added incentive: the state treasurer can establish a recognition program for significant donors, fostering further engagement with the fund.

Ohio's Growing Bitcoin Momentum

SB 57 is part of Ohio’s growing involvement with Bitcoin and cryptocurrency. In December, Ohio House Republican leader Derek Merrin introduced the Ohio Bitcoin Reserve Act (HB 703), which also aims to give the state treasurer the authority to allocate Bitcoin to a reserve fund. Merrin emphasized the need for the state to adapt to the ongoing changes in the financial landscape, saying, “The US dollar is being rapidly devalued, and our state Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation.”

Ohio has also seen other legislative movements in favor of cryptocurrency. In September 2022, Senator Niraj Antani proposed a bill to allow the state to accept cryptocurrencies as payment for taxes and fees. With these initiatives, Ohio is positioning itself as one of the most crypto-forward states in the U.S.

A Growing Trend Across the U.S.

Ohio is not alone in exploring the potential of cryptocurrency reserves. The number of U.S. states proposing similar bills is steadily increasing. In late January, a Utah House committee passed a bill allowing the state to invest a portion of public funds in cryptocurrencies. Ohio is among 12 states that have proposed legislation granting their local treasuries the ability to purchase crypto assets. Arizona and Utah also have bills in progress, according to the Bitcoin Reserve Monitor.

As states across the country consider investing in cryptocurrencies, Ohio is making clear its intentions to lead the way in Bitcoin adoption, with its Bitcoin Reserve Fund standing as a key component of its forward-thinking approach to digital assets.

Looking Ahead

The introduction of SB 57 marks another significant step in Ohio's push toward embracing Bitcoin as a core financial asset. With growing interest in crypto investment and usage at the state level, Ohio could become a beacon for other states seeking to diversify their financial strategies with digital currencies. As the debate over cryptocurrency regulation and adoption continues across the U.S., Ohio’s efforts to incorporate Bitcoin into its public finances will be closely watched.