Ohio Advances Blockchain Basics Act: Crypto Mining and Payments Protections Head to Senate

Ohio is on the verge of sweeping changes for digital assets after the state House overwhelmingly approved the Blockchain Basics Act, a bill designed to safeguard crypto users’ rights and fuel innovation. The legislation now moves to the Senate, where it could soon make Ohio a trailblazer for blockchain-friendly regulation in the U.S.

Landmark Protections for Crypto Holders and Miners

The Blockchain Basics Act, passed with a decisive 68-26 vote in the Ohio House, sets new standards for how state and local governments can interact with digital assets and blockchain technology. If signed into law, the bill would prevent government entities from restricting the use of cryptocurrencies for payments, or limiting individuals’ control over their hardware or self-hosted wallets. The legislation goes even further, allowing individuals to engage in digital asset mining at home—providing they comply with local ordinances—while enabling mining businesses to operate freely in industrial zones that meet zoning requirements.

Streamlining Crypto Regulation and Easing Tax Burdens

In addition to shielding miners and wallet users, HB 116 would make it more difficult for local governments to rezone areas to exclude mining businesses, mandating public notice and an opportunity for community input before any such changes can occur. Mining businesses would maintain the right to appeal against discriminatory zoning decisions. The bill also exempts individual participants—whether mining, staking, exchanging digital assets, or operating blockchain nodes—from state money transmitter, securities, or investment regulations. One of the most practical features for frequent users is a capital gains tax exemption for every crypto transaction under $200, reducing administrative hassles for everyday spending.

Key Stats & Figures

• House Vote: 68 in favor, 26 opposed on House Bill 116
• Capital Gains Exemption: Applies to any crypto transaction under $200 in value
• Regulatory Coverage: Excludes mining, staking, exchange, and node operation from state money transmitter, security, or investment laws
• Mining Zoning Rights: Mining permitted in residential spaces (with local compliance); protections for businesses in industrial zones

Context: Ohio Joins a Wave of State Crypto Legislation

Rep. Steve Demetriou, who introduced HB 116 in February, calls the bill a pivotal step toward preparing Ohio’s economy for a digital future. On the national stage, the state’s efforts arrive just as the U.S. Senate passed the landmark GENIUS Act for stablecoin reform, while other states such as Kentucky, Arizona, Florida, California, Texas, and Wyoming also advance crypto-friendly frameworks. The initiative is widely viewed as part of a trend among states to provide clear, innovation-focused regulation for cryptocurrency.

Conclusion: What This Means for the Market

As Ohio awaits Senate action on the Blockchain Basics Act, the state positions itself as a leader in responsible crypto policy. Supporters see the legislation as both common-sense consumer protection and a catalyst for blockchain industry growth, with capital gains exemptions and clear regulatory guidelines expected to attract businesses and individual users alike. If enacted, Ohio could set a new gold standard for digital asset policies that the rest of the nation may soon follow.