Ohio Senator Introduces Bill to Allow State to Invest in Bitcoin and Create a Local Reserve

Ohio Senate Bill 57, referred to the Financial Institutions, Insurance, and Technology Committee on Jan. 29, authorizes the state's treasurer to invest state funds solely into Bitcoin

Ohio Senator Sandra O’Brien has introduced a second bill to allow the state to invest in Bitcoin to create a local reserve of the cryptocurrency.

Ohio Senate Bill 57, referred to the Financial Institutions, Insurance, and Technology Committee on Jan. 29, authorizes the state’s treasurer to invest state funds solely into Bitcoin

It requires BTC investments to be held for at least 5 years and mandates secure custody solutions for holding the asset.

The bill, introduced on Jan. 28, also requires state entities and government agencies to accept crypto for payments, including taxes, fees, fines, and other government charges. It also stipulates that when agencies receive cryptocurrency, they must convert it to Bitcoin and transfer it to the reserve.

It also establishes a process for Ohio residents, state agencies and state universities to donate BTC to the fund and allows the treasurer to create a recognition program for significant donors.

An excerpt of Ohio Senate Bill 57. Source: Ohio Legislature

SB57 is one of many Bitcoin-related bills to be proposed in the state. In December, Ohio House Republican leader Derek Merrin introduced HB 703, the Ohio Bitcoin Reserve Act, which would give the state Treasurer the option to allocate BTC to a reserve fund.

“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,” Merrin said at the time.

In September, Ohio Senator Niraj Antani introduced a bill allowing the state to accept crypto for payment of taxes and fees.

Related: Utah could be first US state to pass Bitcoin reserve bill: Satoshi Action Fund

The number of US states proposing crypto investment bills is adding up. In late January, a Utah House committee passed a bill that would allow the state to invest a portion of public funds into crypto.

Ohio is among twelve US states that have proposed bills giving their local treasuries permission to buy crypto assets, and two more — Arizona and Utah — have bills that are in progress, according to Bitcoin Reserve Monitor.

US SBR status by state. Source: Bitcoin Reserve Monitor