Ohio Advances Blockchain Basics Act, Strengthening Protections for Digital Asset Users

Ohio is taking decisive steps toward becoming a crypto-friendly state, moving a comprehensive blockchain bill closer to law. The Blockchain Basics Act promises new safeguards for both individuals and businesses, while exempting low-value crypto transactions from capital gains tax.

Ohio House Pushes Forward with Sweeping Crypto Legislation

On Wednesday, Ohio’s House of Representatives approved the Blockchain Basics Act, a major bill aimed at clarifying the rights and responsibilities of digital asset users. The legislation, now advancing to a Senate vote, would prevent state and local authorities from restricting the use of cryptocurrencies as payment methods. Crucially, the bill also ensures that Ohioans can freely use self-custody wallets and hardware wallets for their digital assets, safeguarding personal control over cryptocurrencies.

Mining, Zoning, and Regulatory Exclusions: What the Bill Protects

The Blockchain Basics Act is notable for its support of digital asset mining. The act guarantees that individuals can mine cryptocurrencies at home, subject to local noise and safety ordinances. For larger operations, crypto mining businesses are permitted in industrial zones if they adhere to existing regulations. The bill also prevents sudden rezoning decisions; any effort to change areas where mining occurs requires significant notice and an opportunity for public input. Additionally, mining and staking participants, as well as those exchanging digital assets or running blockchain nodes, would be excluded from burdensome money transmitter, security, and investment oversight.

Key Stats & Figures

• House Bill Passage: Approved by a 68-26 vote in the Ohio House
• Tax Exemption: Crypto transactions under $200 are exempted from capital gains taxes
• Legislative Progress: Bill now moves to the Ohio Senate for further consideration
• Mining Protection: Crypto mining allowed in residential and industrial zones with proper compliance

Ohio Joins a Wave of Pro-Crypto State Initiatives

Spearheaded by Rep. Steve Demetriou, the legislation underscores Ohio’s goal of being at the forefront of blockchain adoption. It arrives in the wake of notable crypto regulatory activity across the U.S.—including the Senate’s recent stablecoin reform under the GENIUS Act and Kentucky’s passage of self-custody protections for Bitcoin and Ethereum. Ohio’s efforts mirror similar bills advancing in states such as Arizona, Florida, California, Texas, and Wyoming, illustrating a coordinated push for more robust digital asset protections nationwide.

Conclusion: What This Means for the Market

Ohio’s Blockchain Basics Act sends a strong message that the state intends to foster crypto innovation while protecting user rights. By shielding everyday transactions from capital gains tax and confirming the legality of self-custody and mining, Ohio positions itself as a national leader in blockchain policy. If signed into law, these reforms could attract investment, inspire similar moves in other states, and pave the way for a friendlier environment for crypto entrepreneurs and users alike.

The Blockchain Basics Act illustrates Ohio’s commitment to balancing technological innovation and legal clarity—charting a course that other states may soon follow.