Ohio Senate Bill 57 pushes for Bitcoin reserve fund creation

An Ohio senator introduced a legislative proposal that could position the state as a frontrunner in adopting cryptocurrency. Ohio Senate Bill 57, introduced by Senator Sandra O’Brien, seeks to authorize the state treasurer to invest state funds into Bitcoin (BTC), with the aim of establishing an "Ohio Bitcoin Reserve Fund."

The bill, which was referred to the Financial Institutions, Insurance, and Technology Committee on January 29, outlines that the investments in BTC would need to be retained for a minimum period of five years. Additionally, it calls for secure custody solutions to ensure the safekeeping of the cryptocurrency.

Senator O’Brien emphasized the need for Ohio to take a leadership role in the crypto space. She expressed her belief that cryptocurrency will play a significant role during President Trump’s term, particularly following his executive order on January 23 to create a crypto working group. This group is tasked with evaluating various aspects of digital assets, including the potential establishment of a "national digital asset stockpile."

In addition to allowing for the investment of state funds into Bitcoin, the proposed legislation mandates that state entities and government agencies accept cryptocurrencies for payments. These include taxes, fees, fines, and other charges levied by the government. Upon receipt, agencies would be required to convert these cryptocurrencies into Bitcoin and transfer them to the reserve fund.

The bill also introduces a mechanism that would enable Ohio residents, state agencies, and universities to donate BTC to the fund. It proposes that the state treasurer establish a recognition program to honor significant contributors.

Senate Bill 57 is not the first Bitcoin-related bill in Ohio. In December, House Republican leader Derek Merrin introduced HB 703, the Ohio Bitcoin Reserve Act, which similarly aimed to give the state Treasurer the option to allocate BTC to a reserve fund. Merrin cited concerns about the devaluation of the US dollar as a reason for this initiative.

Earlier, in September, Senator Niraj Antani put forth a bill allowing the state to accept cryptocurrency for the payment of taxes and fees.

Ohio is among a growing number of US states considering legislation to integrate cryptocurrency into their financial operations. A Utah House committee passed a bill in late January to allow the state to invest a portion of public funds into crypto.

According to Bitcoin Reserve Monitor, twelve US states have proposed bills to permit local treasuries to purchase crypto assets, with Arizona and Utah also having bills in progress.

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