Ohio House Advances Blockchain Basics Act, Cementing Crypto Rights and $200 Tax Exemption

The Ohio House of Representatives has taken a landmark step toward crypto-friendly legislation, passing the Blockchain Basics Act to safeguard digital asset usage, mining rights, and tax exemptions. The bill could make Ohio one of the first states with explicit legal protections for crypto holders and industry participants.

Ohio Sets Precedent with Comprehensive Blockchain Bill

In a decisive 68-26 vote on Wednesday, Ohio’s House approved House Bill 116, also known as the Blockchain Basics Act. If signed into law by Governor Mike DeWine, this measure would prevent state and local governments from prohibiting payments with digital assets, or restricting individuals’ use of self-custodied wallets—including hardware and software varieties. The bill aims to support innovation across the Buckeye State while clearly defining rights for crypto users and businesses.

Mining and Zoning Protections Expand Industry Opportunity

HB 116 gives explicit protections for individuals and enterprises operating in the crypto mining sector. Personal digital asset mining would be permitted in residential areas, within local ordinance limits, while commercial operations would be allowed in industrial zones subject to compliance with existing regulations. The legislation also introduces safeguards by prohibiting municipalities from rezoning areas containing mining businesses without due notice and public comment, and provides avenues for appealing discriminatory zoning decisions. These efforts are expected to attract new investment and foster innovation at both residential and industrial levels throughout Ohio.

Key Stats & Figures

• House Vote: 68 in favor, 26 opposed — strong majority support for crypto rights.
• $200 Capital Gains Exemption: All crypto transactions under $200 are free from state capital gains tax, simplifying use for everyday consumers.
• Zoning Rights: Local governments must provide advance notice and public input before rezoning areas affecting mining businesses.
• Regulatory Exemptions: Miners, stakers, and node operators are exempt from money transmitter, security, and investment statutes in Ohio.

Momentum Builds as Crypto Policies Take Shape Nationwide

Ohio’s legislative progress mirrors a growing trend among U.S. states to establish clear regulatory frameworks for blockchain and digital assets. The House passage of the Blockchain Basics Act follows Kentucky’s adoption of a self-custody crypto law earlier this year and comes just as the U.S. Senate moves forward on stablecoin reforms under the GENIUS Act. States such as Arizona, Florida, California, Texas, and Wyoming are also actively considering similar crypto regulatory initiatives. Crypto advocacy groups—including the Satoshi Action Fund—have hailed Ohio’s proactive approach, citing the capital gains exemption as a practical upgrade that eases the tax burden for routine crypto transactions.

Conclusion: What This Means for the Market

Ohio’s Blockchain Basics Act signals a shift toward regulatory clarity and innovation-friendly policies for digital assets. Should the bill gain final approval in the Senate and earn the governor’s signature, Ohio could emerge as a blueprint for other states eyeing thoughtful crypto legislation—potentially strengthening the state’s position as a hub for blockchain activity and mainstream adoption.