Ohio Advances Blockchain Basics Act, Paving Way for Crypto-Friendly Laws

Ohio is set to become a national leader in digital asset regulation as its House of Representatives approved the Blockchain Basics Act, ushering in sweeping protections for crypto users and miners across the state. The bill, now headed to the Senate, aims to secure digital asset rights and eliminate key regulatory hurdles faced by industry participants.

Wide-Ranging Protections for Digital Asset Users

The Ohio Blockchain Basics Act introduces robust legal safeguards for individuals and businesses engaging with cryptocurrencies. If signed into law, local and state governments will be barred from restricting the use of digital currencies as payment. Additionally, citizens will be protected from interference when utilizing hardware or self-hosted wallets, ensuring privacy and autonomy in holding their assets.

Boosting Crypto Mining and Clarifying Regulatory Exemptions

Under the proposed legislation, individual crypto mining will be permitted in residential areas, subject to existing municipal rules, while larger mining operations will have the right to function in industrial zones. The law also prevents zoning discrimination, requiring local governments to provide due notice and opportunity for comment before making changes affecting mining businesses, while also defining an appeals process. Importantly, those involved in mining, staking, asset swaps, or operating blockchain nodes will be carved out from money transmitting, securities, and investment regulations—lowering the compliance burden and encouraging innovation within the sector.

Key Stats & Figures

• House Vote: 68-26 in favor, reflecting strong bipartisan support for HB 116.
• Capital Gains Relief: Transactions under $200 in value will be exempt from capital gains tax, reducing the reporting burden for small-scale users.
• Legislation Status: HB 116 moves to the Ohio Senate for further consideration after clearing the House.
• Broader Context: Coincides with federal discussions on stablecoin regulations, and follows Kentucky’s recent self-custody law passage.

Momentum Builds for State-Level Crypto Regulation

Ohio’s legislative momentum mirrors a broader trend, with states like Arizona, Florida, California, Texas, and Wyoming all considering or enacting new digital asset measures. Supporters—including policymakers and advocacy groups such as the Satoshi Action Fund—applaud Ohio’s efforts as laying the groundwork for responsible, innovation-friendly regulation. “Once we pass this bill, we’ll become one of the first states in the country to create a common-sense regulatory framework for these cutting-edge technologies and industries,” said bill sponsor Rep. Steve Demetriou. Dennis Porter, CEO of Satoshi Action Fund, also praised the $200 capital gains exemption, describing it as a practical fix for everyday users.

Conclusion: What This Means for the Market

Ohio’s Blockchain Basics Act signals a bold shift toward accommodating digital assets and blockchain innovation at the state level. By streamlining rules and protecting user rights, Ohio positions itself at the forefront of the crypto economy, potentially inspiring a wave of similar legislative efforts nationwide. All eyes now turn to the Senate, where the bill’s final passage could mark a new chapter for crypto adoption in the Midwest and beyond.