Ohio House Approves Blockchain Basics Act, Paving the Way for Robust Crypto Protections

Ohio’s lawmakers have given a resounding endorsement to new cryptocurrency legislation designed to provide sweeping protections for digital asset users and businesses. With the passage of the Blockchain Basics Act, the state inches closer to setting landmark precedents for crypto rights and innovation in the U.S.

Comprehensive Safeguards for Crypto Activity

The Ohio House of Representatives, in a definitive 68-26 vote, advanced the Blockchain Basics Act (House Bill 116), a bill that offers a wide array of rights for both crypto enthusiasts and commercial operators. If enacted, the law would ban any state or local attempts to restrict payments made in digital assets or regulate the use of self-custody hardware wallets. The legislation aims to fortify the autonomy of individuals in managing their digital currencies and assures companies and individuals their right to participate freely in blockchain-powered activities.

Mining, Zoning, and Exemptions Clarified

HB 116 grants explicit permissions for residential crypto mining, provided local ordinances are followed, and affirms the legality of mining businesses in industrial-zoned areas, as long as they comply with existing requirements. The act also imposes new obligations on local governments: they are now barred from rezoning neighborhoods to exclude mining operations without transparent notice and the opportunity for public input. In the event of adverse or discriminatory zoning decisions, mining companies gain a formal path to challenge such actions. Additionally, individuals running mining, staking, node operations, or asset exchanges are shielded from classification as money transmitters or securities businesses, reducing regulatory uncertainty for small operators.

Capital Gains Exemptions and Industry Impact

To further reduce regulatory friction for everyday crypto users, HB 116 introduces a capital gains exemption for any digital asset transaction with a value under $200. This commonsense threshold is intended to spare regular users from cumbersome tax filings on minor transactions. The bill’s breadth reflects a growing movement across U.S. states to craft pragmatic policy frameworks that encourage crypto innovation while providing necessary consumer protections. Ohio’s action follows Kentucky’s recent cryptocurrency self-custody legislation and arrives amid a wave of stablecoin reform at the federal level.

Key Stats & Figures

• House Vote: 68 in favor, 26 against—demonstrating strong bipartisan backing.
• Capital Gains Exemption: Transactions valued under $200 are not subject to capital gains tax under the bill.
• Mining Provisions: Individuals permitted to mine crypto at home; businesses can mine in industrial areas with proper compliance.
• Regulatory Shields: Participants in mining, staking, and node operation excluded from money transmitter, security, and investment laws.

Shaping Ohio’s Crypto Future

Ohio’s proposed legislation positions the state at the forefront of blockchain policy, with industry advocates highlighting its balanced approach. The Satoshi Action Fund lauded the bill, interpreting it as a pivotal move that protects participants while fostering a fertile landscape for blockchain innovation in the Buckeye State. Advocates, including Dennis Porter of the Satoshi Action Fund, have specifically praised the capital gains exemption as a measure that helps ordinary users sidestep unnecessary tax burdens. Should the Senate approve HB 116 and the governor sign it into law, Ohio would stand among the nation’s leaders in digital asset regulation.

Conclusion: What This Means for the Market

Ohio’s Blockchain Basics Act marks a significant leap forward for crypto legislation in the U.S., lowering barriers for users and businesses while establishing clear, innovation-friendly rules. As states nationwide reconsider their digital asset policies, Ohio’s bold actions may offer a model for pragmatic, forward-thinking regulation. The bill’s future now rests with the Senate, but its momentum signals Ohio’s ambition to shape the regulatory terrain for the next era of blockchain and digital finance.