Ohio House Passes Landmark Bill to Protect Crypto Users and Accelerate Blockchain Innovation

Ohio is poised to become a national trailblazer in the digital asset sector after the state House of Representatives overwhelmingly approved a bill aimed at expanding protections and freedoms for crypto users. The ‘Blockchain Basics Act’ now heads to the Senate, signaling growing momentum for robust and clear cryptocurrency regulation in the Buckeye State.

Ohio Legislators Push for Crypto-Friendly Laws

In a decisive move on Wednesday, Ohio lawmakers voted 68-26 in favor of House Bill 116, designed to safeguard the rights of individuals and businesses operating within the digital asset space. The proposed legislation, known as the ‘Blockchain Basics Act,’ seeks to prohibit state and local entities from restricting the use of cryptocurrencies for payments or interfering with personal use of hardware and self-custody wallets. If enacted, the bill would also exempt crypto transactions under $200 from capital gains tax requirements, easing everyday adoption for Ohioans.

Boosting Mining and Blockchain Activity Across Communities

HB 116 takes direct aim at promoting innovation by supporting the right to mine crypto both for individuals in residential areas (subject to local rules) and for businesses in industrial zones under existing regulations. Importantly, the bill stipulates that mining businesses cannot be rezoned without proper community notification and an opportunity for public input. Furthermore, individuals who engage in mining, staking, digital asset exchanges, or running blockchain nodes will no longer be classified under stringent money transmitter or securities laws—removing significant regulatory hurdles for grassroots blockchain participation.

Key Stats & Figures

• House Approval: HB 116 passed with a 68-26 majority on Wednesday.
• Capital Gains Relief: All crypto transactions under $200 are exempt from capital gains taxes.
• Industry Protections: State and local governments barred from restricting digital asset payments or interfering with self-custody wallets.
• Mining Rights: Residential mining permitted (per local ordinances), and businesses protected from abrupt zoning changes.

Ohio Joins the National Wave of Crypto Legislation

Ohio’s new bill comes on the heels of significant crypto regulatory efforts at both state and federal levels. Just one day prior, the U.S. Senate passed sweeping stablecoin reform under the GENIUS Act, showing nationwide progress on digital asset oversight. States such as Kentucky have recently enacted their own self-custody laws for Bitcoin and Ethereum, and other jurisdictions—including Arizona, Florida, California, Texas, and Wyoming—are considering similar reforms. Representative Steve Demetriou, HB 116’s sponsor, emphasized Ohio’s commitment to embracing blockchain’s economic potential and positioning the state as a leader in digital innovation. Supporters such as the Satoshi Action Fund herald the act as a ‘clear signal’ of growing political will to protect crypto users and catalyze local industry growth. The group also praised the capital gains exemption as a practical step for simplifying tax obligations for ordinary cryptocurrency users.

Conclusion: What This Means for the Market

With the Ohio Blockchain Basics Act on track for Senate review, the state is set to become one of the first in the U.S. to implement broad-based legal protections for digital asset users and enterprises. As momentum builds at the state and national levels, Ohio’s legislative efforts could serve as a model for others seeking to foster innovation and clarity within the crypto economy.