HB18

This bill establishes a comprehensive framework for cryptocurrency and digital asset investments by Ohio state entities, primarily focusing on allowing the Treasurer of State and various state retirement systems to invest in certain digital assets with strict guidelines. The bill defines key terms like "digital asset," "exchange-traded product," and "secure custody solution," and permits the Treasurer of State to invest interim funds from specific state funds (including the general revenue fund and budget stabilization fund) in digital assets, with a cap of 10% of the fund's balance. The investments are restricted to exchange-traded products with a minimum average market capitalization of $750 billion over the preceding twelve months, and must be held through secure custody solutions, qualified custodians, or registered investment companies. The bill also amends several existing sections of the Ohio Revised Code to explicitly allow state retirement boards (such as public employees, police and fire, teachers, school employees, and state highway patrol retirement systems) to invest in these exchange-traded products, while maintaining their fiduciary responsibilities to prioritize financial returns. Additionally, the bill mandates specific security requirements for digital asset custody, including encrypted private key management, multi-party governance structures, and regular security audits. The legislation is formally named the Ohio Strategic Cryptocurrency Reserve Act and represents a structured approach to potentially incorporating digital assets into state investment portfolios.