Committee adopts substitute to House Bill 18 creating framework for Ohio strategic reserve that may include crypto

The House Technology and Innovation Committee on a voice adoption without objection approved a substitute to House Bill 18 that would create a new fund for long‑term holdings and authorize a new Ohio Strategic Reserve Authority to oversee management.

Vice Chair Derek Workman moved to amend House Bill 18 with the substitute, saying, “This sub bill reflects diligent work conducted in conjunction with the treasurer's office,” and described the substitute as a vehicle to create a reserve funded by “small percentages of interest earnings from other state funds.” The motion to adopt substitute bill L1360174‑3 was not opposed and was adopted as the substitute to House Bill 18.

What the substitute would do: Testimony and floor explanation said the sub bill would:

- Authorize the state treasurer’s office to establish a new strategic reserve fund for long‑term holdings, initially funded by small percentages of interest earned by other state funds. - Allow digital assets that meet the bill’s eligibility criteria to be held in the reserve; witnesses described a market‑cap eligibility filter that, under current market conditions, would effectively limit initial purchases to mature assets such as Bitcoin. - Create the Ohio Strategic Reserve Authority to manage the fund; the authority would be led by the treasurer of state, the auditor of state, the director of the Office of Budget and Management (OBM), one investment expert appointed by the president of the Senate and one appointed by the speaker of the House, according to witnesses and bill sponsors.

Why it matters: Sponsors said the substitute is intended to modernize state investment options and create a governance structure designed to protect public funds while permitting the state to hold long‑term assets beyond traditional securities. Proponent witnesses told the committee that carefully structured custody, governance and audit protocols are standard practice for institutions that hold digital assets.

Committee debate and clarifications: Representative Zach Prouty’s written testimony and an informational infographic were noted as additional resources; witnesses and sponsors agreed to schedule follow‑up briefings for committee members who requested more detail. Sponsor Representative Demetrio said the substitute was worked on “in conjunction with the treasurer's office” and framed the reserve as sitting “outside of the traditional treasury.”

Formal action: Vice Chair Workman moved the amendment (substitute L1360174‑3); the committee adopted the substitute without objection. No roll‑call vote was recorded in the hearing transcript.

Follow‑ups directed by the committee: Committee members requested more detailed briefings on custody models (including multisignature and cold storage approaches), operational security, and the authority’s governance. Several witnesses offered to provide technical briefings and written materials and to coordinate with committee staff.

Ending: With the substitute adopted, the committee concluded the second hearing on House Bill 18 and adjourned. Further hearings and briefings were scheduled informally by staff and committee leadership.