Ohio Pushes Landmark Crypto Legislation Forward: State House Approves Bill Protecting Digital Asset Users and Miners

Ohio is poised to become a national frontrunner in cryptocurrency regulation following its House of Representatives’ decisive approval of the ‘Blockchain Basics Act.’ This groundbreaking bill promises critical protections for crypto users and miners, while clearing the way for everyday digital asset transactions and business innovation across the state.

Comprehensive Protections Proposed for Ohio’s Crypto Community

On Wednesday, Ohio’s House took a significant step toward fortifying digital asset rights by passing House Bill 116, widely known as the Ohio Blockchain Basics Act. If enacted, the bill would shield residents and businesses from government restrictions against using cryptocurrency as payment, and safeguard individual access to hardware and self-hosted wallets. Additionally, it explicitly allows private digital asset mining within homes—subject to local rules—and makes it easier for larger mining operations to function within industrial zones, as long as existing zoning standards are met.

Empowering Miners and Streamlining Crypto Operations

The legislation addresses community concerns by preventing local governments from abruptly rezoning industrial mines, instead requiring proper public notification and opportunities for comment. Mining businesses will also have the right to appeal against unfair zoning practices. Moreover, the bill clarifies that individuals participating in mining, staking, asset trading, or running blockchain nodes will not be treated as money transmitters or fall under restrictive securities and investment laws. Importantly, the legislation includes a $200 capital gains tax exemption for smaller crypto transactions, reducing tax reporting headaches for everyday users.

Key Stats & Figures

• House Vote Margin: 68 in favor, 26 opposed—demonstrating robust legislative support.
• Capital Gains Exemption: Crypto transactions under $200 are exempt from capital gains tax under the proposed law.
• Bill Sponsor: Representative Steve Demetriou (R), introduced the bill in February 2024.
• Crypto Activities Protected: Covers self-custody wallets, home mining, institutional mining, staking, trading, and node operation.

Momentum Builds Amidst National Regulatory Movement

Ohio’s legislative momentum comes as nationwide crypto policy quickly evolves. Just one day before Ohio’s House vote, the U.S. Senate advanced sweeping stablecoin reforms under the GENIUS Act—signaling a national shift towards clearer crypto rules. Ohio joins a wave of state-led innovation, following Kentucky’s recent passage of a self-custody law and similar bills under consideration in states like Arizona, Florida, California, Texas, and Wyoming. Industry advocacy groups like the Satoshi Action Fund have lauded Ohio’s move, with CEO Dennis Porter calling the bill “a clear signal that lawmakers are prioritizing both innovation and fundamental rights for digital asset participants.” He described the $200 exemption as “a commonsense fix that helps everyday Bitcoin users avoid unnecessary tax complexity.”

Conclusion: What This Means for the Market

Ohio’s Blockchain Basics Act, should it clear the Senate and receive gubernatorial approval, promises to position the Buckeye State at the forefront of digital asset regulation in the U.S. By protecting wallet and mining rights and streamlining tax obligations, Ohio could set a precedent for future crypto policies nationwide—offering a blueprint for fostering both innovation and user protections in the rapidly evolving Web3 landscape.