Ohio Advances Blockchain Basics Act, Strengthens Protections for Crypto Users and Miners

Ohio has taken a decisive step toward becoming one of the most crypto-friendly states in America as its House of Representatives passed the Blockchain Basics Act, a bill designed to protect digital asset users, streamline mining regulations, and clarify tax laws for small transactions. The legislation now proceeds to the state Senate, offering hope for legal clarity and innovation in the Buckeye State.

Comprehensive Protections for Crypto Users

The Ohio Blockchain Basics Act introduces significant safeguards for both individual and business participants in the digital asset ecosystem. If enacted, the law would prevent state and local governments from banning digital assets as a form of payment or restricting residents’ use of hardware wallets and self-custody solutions. Notably, the bill ensures that users can freely utilize their preferred wallets and payment options across Ohio without fear of local interference, fostering a regulatory environment that encourages the adoption of cryptocurrencies.

Clear Legal Framework for Crypto Mining

The legislation outlines clear boundaries for digital asset mining activities within the state. Private citizens may mine cryptocurrencies at residential properties as long as they comply with applicable local ordinances, while mining businesses are permitted to establish operations in industrial areas if they meet current zoning standards. Additionally, the bill includes strong procedural protections by requiring municipalities to provide public notice and opportunity for community input before making zoning changes that would affect mining businesses. Companies will also have the right to appeal against discriminatory or sudden zoning actions, reducing uncertainty for large-scale miners.

Key Stats & Figures

• House Passage: The Blockchain Basics Act moved ahead with a decisive 68-26 vote in the Ohio House of Representatives.
• Capital Gains Exemption: Crypto transactions under $200 are exempted from capital gains tax, making small payments simpler and more accessible.
• Broad Exemptions: Cryptocurrency miners, stakers, asset exchangers, and node operators are not subject to state or local money transmitter, securities, or investment laws under the bill.
• Timetable: The legislative process began in February 2024 and advanced through committee review before achieving House approval in June.

Momentum Builds for Crypto-Friendly Laws Nationwide

Ohio’s proposed legislation arrives as part of a broader wave of crypto regulatory reform sweeping the United States. Just a day before Ohio’s House vote, the U.S. Senate approved significant stablecoin regulation with the GENIUS Act, highlighting shifting federal attitudes. On the state level, Ohio joins Kentucky, which recently enacted new protections for self-custody of Bitcoin and Ethereum. Industry advocates, including the Satoshi Action Fund, have lauded Ohio’s efforts for balancing innovation with prudent oversight. As Dennis Porter, CEO of the Satoshi Action Fund, emphasized, the $200 tax exemption for crypto transactions delivers practical benefits to everyday users while encouraging broader participation in digital asset markets.

Conclusion: What This Means for the Market

With the Blockchain Basics Act now awaiting Senate deliberation, Ohio is poised to set a legal precedent for other states considering similar legislation. By offering legal protections, regulatory clarity, and pragmatic tax treatment for digital asset users and businesses, Ohio is sending a clear message that it is open for blockchain innovation. If passed, the bill could pave the way for expanded adoption and further regulatory developments nationwide.