Ohio senator proposes Bitcoin reserve fund with five-year hold

Ohio Senator Sandra O’Brien has introduced a new bill aimed at allowing the state to invest in Bitcoin (CRYPTO:BTC), establishing what is termed the "Ohio Bitcoin Reserve Fund."

Senate Bill 57, which was referred to the Financial Institutions, Insurance, and Technology Committee on January 29, permits the state treasurer to invest state funds exclusively in Bitcoin.

The bill mandates that any Bitcoin acquired must be held for a minimum of five years and requires secure custody solutions for managing the asset.

“The crypto world is here, and Ohio needs to be a leader.” O’Brien stated in a statement on X, emphasising the importance of Ohio taking a leadership role in the cryptocurrency sector.

This initiative follows an executive order signed by former President Donald Trump that established a crypto working group to explore the creation of a national digital asset stockpile.

In addition to allowing investments in Bitcoin, the bill requires state entities and government agencies to accept cryptocurrency for various payments, including taxes and fees 

When agencies receive cryptocurrency, they must convert it to Bitcoin and transfer it to the reserve fund.

The legislation also establishes a process for Ohio residents and state universities to donate Bitcoin to the fund and allows for recognition programs for significant contributors.

Senate Bill 57 is not the first attempt by Ohio lawmakers to establish a Bitcoin reserve; it follows House Bill 703 introduced by House Republican leader Derek Merrin in December.

Merrin's bill aimed to give the state treasurer the option to allocate Bitcoin to a reserve fund as a hedge against inflation.

As of now, Ohio joins twelve other states that have proposed similar legislation allowing local treasuries to invest in cryptocurrency assets.

At the time of reporting, the Bitcoin (BTC) price was $97,435.86.