- Ohio’s Blockchain Basics Act exempts sub-$200 crypto transactions from capital gains taxes and protects payment freedom across the state.
- The bill shields mining operations from discriminatory rules while legalizing residential crypto mining under local ordinances in Ohio.
- Developers gain major relief as the bill removes licensing requirements for mining, staking, swaps, and self-custody wallet use.
Ohio lawmakers have moved closer to setting a national precedent for crypto-friendly legislation. On Wednesday, the Ohio House passed House Bill 116, also known as the Blockchain Basics Act. The bill introduces sweeping protections for digital asset users, including exempting crypto transactions under $200 from capital gains taxes. Backed primarily by Republican Representative Steve Demetriou, the legislation aims to simplify crypto payments and safeguard mining operations from excessive regulation. It passed with a strong 70-26 majority and now heads to the state Senate for further consideration.
Major Tax Relief and Payment Freedoms
The bill removes tax burdens on low-value crypto transactions. Any crypto payment under $200 will be tax-exempt, a move that encourages day-to-day crypto use. Moreover, this threshold will rise yearly based on inflation and the Consumer Price Index. The law also prevents future state officials from lowering this limit once adjusted.
Additionally, it prohibits state agencies from restricting crypto payments. Residents will be free to accept Bitcoin or other digital assets for goods and services. This provides clarity for businesses and consumers alike. Hence, this could lead to wider merchant adoption and greater mainstream usage of crypto across the state.
Strong Protections for Crypto Miners and Developers
Besides easing payment rules, the bill supports mining and software development. It allows crypto mining in residential zones, provided local noise and zoning regulations are followed. Consequently, small-scale miners gain legal backing to operate without fear of sudden shutdowns.
The bill also shields industrial mining operations from targeted restrictions. It stops unfair rezoning that could impact such businesses and ensures miners can take legal action if discriminated against. Moreover, it confirms that miners and stakers are not offering securities, which directly challenges current federal regulatory views.
Developers also receive strong protections. No money transmitter license is required for mining, staking, or crypto swaps. Furthermore, self-custody is safeguarded, with residents guaranteed the right to use hardware or non-custodial wallets.
Broader Implications Across the United States
Across the country, over 40 states have introduced crypto-related legislation. However, Ohio’s bill is one of the most comprehensive. Its strong bipartisan support and practical guidelines could inspire similar moves nationwide. If passed by the Senate, the Blockchain Basics Act will be a milestone for crypto innovation and user rights in the U.S.
