A new bill paves the way for tax immunity on cryptocurrency transactions and promotes investment in spot ETFs for state pension funds.
On February 24, Ohio introduced a new bill that would prevent additional taxes on cryptocurrency payments.
The legislative proposal, House Bill 116, known as the “Ohio Blockchain Basics Act,” introduced by Representative Steve Demetriou and supported by five co-sponsors (Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams), aims to amend existing legislation to prevent municipalities from imposing taxes or additional fees on digital assets, beyond those already applied to fiat currency transactions.
The proposal states:
“The General Assembly will not pass a bill proposing to impose fees, taxes, or other charges on digital assets used as a method of payment for goods and services.”
The bill clearly defines “digital assets” to include cryptocurrencies, stablecoins, and non-fungible tokens (NFTs). It also clarifies that taxes typically applied to legal tender, such as state taxes or sales taxes, would continue to apply to crypto transactions, but without the addition of new tax levies.
The proposal further establishes that no state agency or political subdivision may prohibit citizens from accepting digital assets as payment for goods and services.
Right to self-custody and mining
The bill guarantees Ohio residents the right to maintain self-custody of their digital assets using hardware wallets or non-custodial wallets, as well as to participate in cryptocurrency staking.
Activities such as mining, staking, and trading crypto assets would not require Money Service Business licenses under existing Ohio laws. Citizens would also be allowed to mine in residential areas, as long as they comply with local zoning regulations, while mining companies would be explicitly authorized in industrial zones and could not be unfairly penalized by changes to local zoning laws.
Pension funds and ETF investments
The bill also touches on Ohio’s state pension funds, which would be required to assess the potential risks and benefits of investing in crypto ETFs, with an obligation to report to the General Assembly within one year.
Last September, Senator Niraj Antani introduced a bill that requires the state to accept cryptocurrencies for the payment of state taxes and fees.
