Ohio House Advances Landmark Blockchain Basics Act, Stepping Towards Crypto-Friendly Laws

Ohio is poised to become a trailblazer in digital asset regulation as its House of Representatives advances a groundbreaking bill protecting cryptocurrency users and businesses. The Blockchain Basics Act now heads to the state Senate, aiming to establish one of the most comprehensive state-level crypto frameworks in the U.S.

Key Protections Proposed for Crypto Users and Miners

The Ohio Blockchain Basics Act, if enacted, would introduce robust safeguards for both individuals and companies engaged with cryptocurrencies. The legislation seeks to prevent state and local authorities from banning the use of digital assets for payments or restricting personal control through hardware or self-custody wallets. It also tackles cryptocurrency mining, ensuring individuals can operate mining setups within residential areas (subject to local ordinances) and allowing commercial miners to run their operations in industrial zones, provided they meet regulatory standards. Additionally, the bill blocks sudden rezoning targeting mining facilities without proper notice or public input, while granting mining businesses the right to appeal unfair zoning changes.

Legal Exemptions and Tax Relief Included

Beyond usage protections, House Bill 116 proposes relief from stringent regulations for those mining, staking, exchanging crypto assets, or running blockchain nodes, exempting them from money transmitter, securities, and investment laws. Notably, the act includes a tax exemption for crypto transactions valued under $200, striving to eliminate unnecessary tax complexity for everyday users. These measures align Ohio’s approach with recent waves of pro-crypto state legislation, reflecting the sector’s push for sensible regulation nationwide.

Key Stats & Figures

• House Vote: Passed with a decisive 68-26 majority in the Ohio House of Representatives.
• Capital Gains Exemption: Crypto transactions under $200 excluded from state capital gains tax.
• Mining Provisions: Supports both residential and industrial crypto mining, with appeals process for zoning issues.
• Policy Sponsor: Rep. Steve Demetriou initiated HB 116 in February 2024 and shepherded it through the House.

Context: Ohio’s Move Amid National Momentum

This legislative push comes at a time when crypto regulatory clarity is gaining traction nationally. Just a day before Ohio’s House vote, the U.S. Senate approved major stablecoin reforms through the GENIUS Act, underscoring the fast-evolving landscape for digital finance regulation. Ohio joins states like Kentucky—which recently adopted new self-custody protections for crypto users—in crafting comprehensive legal environments to foster blockchain innovation and growth.

Conclusion: What This Means for the Market

The advancement of Ohio’s Blockchain Basics Act signals growing recognition of digital assets’ role in the state’s future economic landscape. If passed by the Senate and signed into law, these measures could catalyze more crypto business, innovation, and investment in Ohio—potentially inspiring similar initiatives across the U.S. As support gathers, eyes now turn to the Ohio Senate, where the bill’s fate will determine its ultimate impact on both local and national crypto regulation.