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

Ohio’s House of Representatives has taken a significant leap toward crypto-friendly regulation, passing the Blockchain Basics Act and setting the stage for broader digital asset rights and mining protections across the state. This landmark legislation, if enacted, could place Ohio among the leading states embracing blockchain innovation and regulatory clarity.

Landmark Legislation to Safeguard Digital Asset Use

The new bill, titled the Ohio Blockchain Basics Act, aims to shield crypto users and businesses from restrictive state and local oversight. If it becomes law, Ohioans will have the legal right to use digital assets for payments without interference, and authorities will be barred from hindering access to self-hosted wallets or hardware wallets. The bill’s passage also ensures that digital asset mining is protected: residents can mine cryptocurrencies at home—subject to local ordinances—while businesses are allowed to operate mining operations in industrial areas, provided they comply with existing regulations.

Mining, Transactions, and Zoning: A Pro-Bitcoin Approach

The legislation goes further by preventing local governments from rapidly rezoning areas to block mining operations, instead mandating proper notification and opportunity for public input. Crypto mining companies will also have the right to appeal discriminatory zoning decisions. In a further boost to everyday crypto users, the Act redraws regulatory boundaries, exempting individuals participating in mining, staking, exchanges, or node operations from intrusive money transmitter, securities, and investment laws. Additionally, individuals will enjoy a capital gains tax exemption for crypto transactions under the $200 threshold, simplifying reporting and reducing tax friction for smaller transactions.

Key Stats & Figures

• House Vote: The bill passed 68-26, demonstrating strong legislative support.
• Capital Gains Relief: Crypto transactions valued below $200 will be exempt from capital gains tax under the bill.
• Business Protections: Mining operations in industrial zones are protected from sudden rezoning and have rights to appeal restrictive actions.
• Regulatory Exemptions: Individuals mining, staking, exchanging, or operating blockchain nodes are excluded from money transmitter, securities, and investment requirements.

Ohio Seeks Spotlight as Blockchain Innovation Leader

Representative Steve Demetriou, sponsor of the bill, emphasized that the legislation is meant to showcase Ohio as a future-ready state, willing to nurture both individual crypto enthusiasm and institutional innovation. By offering clear and accessible guidelines, the state hopes to encourage blockchain enterprises to set roots and grow within Ohio’s borders. The bill’s advancement also arrives as the national spotlight shines on crypto regulation, following Congressional movements on stablecoins and similar initiatives in states like Kentucky, which recently enacted its own digital asset self-custody law.

Conclusion: What This Means for the Market

Ohio’s push to ratify the Blockchain Basics Act signals a growing trend of state-led crypto policy innovation. If the bill is signed into law, Ohio could emerge as a blueprint for pragmatic crypto regulation, balancing consumer protection with industry development. As national debates continue, Ohio’s forward-thinking approach may inspire other states to embrace blockchain’s potential while safeguarding individual rights and fueling market growth.