Ohio Advances Blockchain Basics Act, Pioneering Crypto Rights and Regulatory Protections

The Ohio House of Representatives has taken a significant step toward solidifying digital asset protections statewide, passing the Blockchain Basics Act to safeguard cryptocurrency users and clarify regulatory treatment for the industry. If enacted, this legislation will position Ohio among the most progressive states in crypto policy nationwide.

Landmark Legislation for Digital Assets Passes House Vote

Ohio’s Blockchain Basics Act, formally known as House Bill 116, received House approval on Wednesday with a resounding 68-26 vote. The proposed legislation, sponsored by Representative Steve Demetriou, introduces a broad suite of measures shielding individuals and businesses engaging with cryptocurrencies. Key provisions prohibit state and local governments from restricting the use of digital assets as payment and ensure that Ohioans retain the right to use self-custodied hardware wallets free from interference.

Protections for Miners and Clear Regulatory Exemptions

A major focus of the Act is crypto mining: individuals will be allowed to mine digital currencies from their homes, subject to local rules, while mining companies can operate in established industrial zones if they comply with existing regulations. Notably, the bill blocks local authorities from suddenly rezoning mining areas without timely notice and public input, also giving mining businesses a clear mechanism to challenge discriminatory zoning. Beyond mining, the legislation excludes those mining, staking, exchanging assets, or running blockchain nodes from stringent money transmitter and investment laws, aiming to reduce bureaucratic red tape for everyday participants. There is also a new capital gains tax exemption on crypto transactions under $200, simplifying the tax process for routine users.

Key Stats & Figures

• House Approval: Passed with a 68-26 vote, sending the bill to the state Senate for further consideration.
• $200 Capital Gains Exemption: Crypto transactions valued under $200 will be exempt from capital gains tax if the bill becomes law.
• Mining Rights: Permits residential crypto mining and industrial mining operations, defending against abrupt or discriminatory zoning changes.
• Regulatory Clarity: Excludes individuals performing crypto mining, staking, exchanging, or node operation from money transmitter and security laws.

Growing Momentum for State-Level Crypto Policy

Representative Demetriou emphasized Ohio’s ambition to “embrace the future of our economy and blockchain technology,” describing the Act as a landmark effort to bring sensible regulation to innovative digital asset industries. Approval of the bill comes amidst a wave of regulatory activity across the U.S., with Kentucky recently passing a self-custody law and federal lawmakers advancing stablecoin reforms. According to the Satoshi Action Fund, which advocates for progressive crypto policy, Ohio’s bipartisan move signals broadening support for industry-friendly regulation while promoting innovation within the state.

Conclusion: What This Means for the Market

As Ohio positions itself on the front lines of crypto legislation, its forward-thinking approach could inspire similar moves in states like Arizona, Florida, California, Texas, and Wyoming. The Blockchain Basics Act, if enacted, promises greater certainty and protection for digital asset users and businesses, potentially accelerating broader adoption and supporting the state’s rise as a crypto policy leader. All eyes now turn to the Ohio Senate, where industry advocates anticipate sustained momentum for this groundbreaking bill.