Ohio Advances Blockchain Basics Act, Strengthening Crypto Rights and Mining Freedoms

Ohio is poised to become a leading crypto-friendly state as its House of Representatives pushes forward the Blockchain Basics Act—landmark legislation safeguarding digital asset use, self-custody, and mining for individuals and businesses. The measure now heads to the Senate, bringing Ohio closer to a major regulatory milestone for blockchain adoption.

Legislation Protects Digital Asset Payments and Self-Custody

The Ohio Blockchain Basics Act, recently approved in a 68-26 House vote, lays out robust protections for crypto users. If signed into law, the bill would prevent state and local authorities from restricting payments with digital assets or interfering with citizens’ use of self-custody solutions such as hardware wallets. By outlawing such interference, Ohio aims to empower individuals to take control of their digital assets without fear of government overreach.

Opening Doors for Mining and Fair Zoning Laws

The proposed legislation addresses the rights of crypto miners, granting homeowners explicit permission to mine digital assets in residential areas so long as they comply with local ordinances. Meanwhile, industrial mining operations would be allowed to function in designated zones, provided all existing regulations are met. Notably, the Act prohibits local governments from abruptly rezoning areas to block mining, instituting mandatory notice, public comment periods, and appeals for affected businesses, ensuring fair treatment and procedural transparency for miners.

Key Stats & Figures

• House Vote: The Ohio House passed the Blockchain Basics Act with a 68-26 majority.
• Capital Gains Exemptions: The Act exempts crypto transactions below $200 from capital gains taxes.
• Scope of Protections: Individuals involved in mining, staking, exchanging, or running blockchain nodes are exempt from money transmitter and securities laws.
• Legislative Momentum: The bill was first introduced in February and passed out of the House Technology and Innovation Committee before gaining full House approval.

Setting a New Standard for Crypto Regulation

House Bill 116, sponsored by Rep. Steve Demetriou, is part of a growing wave of proactive state-level crypto regulations—most recently reflected in Kentucky’s self-custody law and federal discussions on stablecoin reform. Supporters applaud the legislation’s clear legal framework, which shields crypto participants from ambiguous or restrictive policies and encourages innovation within Ohio’s so-called “Buckeye State.” Advocacy groups like the Satoshi Action Fund have described the measure as a “clear signal” of Ohio’s willingness to protect industry innovators, while the $200 tax exemption was praised as a pragmatic step for everyday users seeking to avoid tax headaches.

Conclusion: What This Means for the Market

With its Blockchain Basics Act, Ohio is positioning itself at the forefront of balanced digital asset regulation, offering clarity for both users and businesses. If the bill successfully passes through the Senate and earns Governor DeWine’s signature, the state could serve as a blueprint for other regions aiming to foster blockchain investment and innovation while maintaining reasonable safeguards. As the momentum builds, stakeholders across the crypto landscape are watching Ohio’s policy experiment as a harbinger of the industry’s future regulatory climate.