Ohio Advances Blockchain Basics Act, Proposing Bold Crypto Rights and Tax Exemptions

The Ohio House of Representatives has passed the Blockchain Basics Act, a sweeping measure designed to safeguard digital asset usage, enable crypto mining, and set new tax exemptions—putting the state on a path to becoming a leader in blockchain innovation. The bill now moves to the Senate as lawmakers press forward with what could be landmark crypto legislation.

Ohio House Moves Forward With Comprehensive Crypto Protections

In a decisive 68-26 vote on Wednesday, Ohio lawmakers approved House Bill 116, known as the Blockchain Basics Act. This groundbreaking legislation aims to prevent state and local authorities from restricting the use of digital assets for payments or interfering with residents’ access to hardware and self-hosted crypto wallets. Sponsored by Representative Steve Demetriou, the bill was first introduced in February, earning broad support from the House Technology and Innovation Committee before yesterday’s floor approval.

Mining, Wallet Access, and Zoning Rights Defined

The Act would permit individuals to mine digital assets in residential areas, respecting local ordinances, and would formally authorize industrial-scale mining in business zones compliant with existing regulations. Furthermore, mining companies are granted protections against abrupt zoning changes—requiring local governments to provide advance notice, opportunities for public comment, and avenues to appeal discriminatory actions. Ohio’s approach emphasizes both the rights of grassroots crypto enthusiasts and established businesses operating in the digital asset ecosystem.

Legal Clarity For Crypto Participants and New Tax Relief

Notably, the bill shields individuals engaged in mining, staking, asset exchanges, or maintaining blockchain nodes from being classified under often-onerous money transmitter, security, or investment statutes. Additionally, House Bill 116 introduces a new tax incentive: capital gains taxes are waived for any crypto transaction valued below $200, offering practical relief to ordinary users frequently transacting in digital currencies. This move echoes similar legislation recently enacted in Kentucky, signaling a growing trend among U.S. states to codify user-friendly crypto regulations.

Key Stats & Figures

• House Vote: Bill passed with a 68-26 majority in the Ohio House
• Capital Gains Threshold: Transactions under $200 are exempt from state capital gains tax if the bill becomes law
• Zoning & Mining: Establishes notification and appeals process for mining businesses impacted by zoning changes
• Individual Protections: Exempts mining, staking, and node operation from money transmitter and securities laws

A Turning Point for State Crypto Legislation

Ohio’s Blockchain Basics Act arrives amid a nationwide surge in crypto regulatory efforts—mirrored by the U.S. Senate’s recent passage of stablecoin reforms and new measures in states like Kentucky. Crypto policy advocacy groups applauded the move, with Dennis Porter, CEO of the Satoshi Action Fund, highlighting the bill as an important signal of Ohio’s intent to protect industry participants while fostering blockchain innovation. Porter called the $200 tax exemption a “commonsense fix” for everyday users and expressed optimism about the Act’s prospects as it advances to the Senate.

Conclusion: What This Means for the Market

Ohio’s push for clear, forward-thinking crypto laws puts it at the forefront of digital asset policy in the U.S. Should the Blockchain Basics Act be enacted, it will make Ohio one of the first states to implement robust protections for both crypto users and industry operators, providing a regulatory model other states may soon follow as the sector matures.