Ohio Blockchain Basics Act Brings Major Crypto Protections and Mining Rights Closer to Law

Ohio lawmakers are pushing the state to the forefront of digital asset regulation, as the Ohio Blockchain Basics Act passed the House of Representatives with broad support. The legislation promises sweeping protections for crypto users and miners, signaling a pro-innovation shift from state leadership just as U.S. crypto policy heats up nationwide.

Comprehensive Protections for Crypto Users and Miners

The Ohio Blockchain Basics Act, which cleared the Ohio House in a 68-26 vote, takes significant steps to anchor digital asset rights within state law. If signed by Governor Mike DeWine, the measure will prevent any state or local official from banning the use of cryptocurrencies for payments or restricting individuals’ access to self-custody hardware or software wallets. The bill also expands protections to crypto mining, allowing individuals to mine in residential areas—subject to local guidelines—and enabling industrial-scale mining in appropriately zoned locations, provided businesses comply with existing regulations. Local authorities would be forbidden from targeting mining operations through discriminatory rezoning, and mining businesses would gain formal rights to challenge unfair zoning actions.

Tax Relief and Regulatory Clarity for Ohio’s Crypto Industry

The legislation offers further incentives for adoption, notably excluding routine activities like mining, staking, and blockchain node operation from state money transmitter, security, and investment laws. Crypto users will also benefit from a capital gains tax exemption for digital asset transactions valued below $200, reducing complexity for small-scale users. House Bill 116, championed by Rep. Steve Demetriou since February, now advances to the Senate after clearing both the House Technology and Innovation Committee and the full legislative chamber. The move follows a trend as states like Kentucky recently enacted their own crypto self-custody rights.

Key Stats & Figures

• House Vote: Passed 68-26 in favor in the Ohio House of Representatives.
• Capital Gains Exemption: Transactions under $200 in crypto are exempt from state capital gains tax.
• Mining Rights: Permits residential and industrial mining, with businesses protected from arbitrary rezoning.
• Regulatory Exemptions: Miners, stakers, and node operators exempt from money transmitter, security, and investment rules.

Ohio’s Crypto Push Reflects a Shifting National Landscape

The surge for thoughtful digital asset regulation isn’t isolated to Ohio. States such as Arizona, Florida, California, Texas, and Wyoming are considering or implementing new crypto policies. The recent passage of the GENIUS Act in the U.S. Senate has also propelled stablecoin reforms into the national spotlight. According to Satoshi Action Fund co-founder Dennis Porter, Ohio’s move is a “clear signal” that lawmakers are prepared to protect crypto innovators and users while driving economic modernization in the Buckeye State. Porter added that the $200 exemption is a sensible solution to prevent unnecessary tax burdens on everyday Bitcoin users.

Conclusion: What This Means for the Market

Ohio stands poised to become a trailblazer in crypto-friendly regulation if the Blockchain Basics Act is enacted. The proposed law not only strengthens industry rights but also fosters a favorable environment for innovation, signaling the state’s intention to lead in the evolving U.S. digital asset sector. As the Senate considers the bill, all eyes are on Ohio’s next move—and on the growing momentum for progressive crypto regulation nationwide.