The U.S. state introduces crypto-friendly regulations with tax exemptions and protections for bitcoin mining: the bill now moves to the Senate.
On June 18, the Ohio House of Representatives approved the “Ohio Blockchain Basics Act” (HB 116) with a 70–26 vote. The bill introduces tax benefits for payments made in bitcoin and other cryptocurrencies within the state.
The core of the new legislation concerns capital gains tax exemptions for all bitcoin and cryptocurrency transactions valued under $200. This threshold is not fixed but will increase annually in line with the Consumer Price Index (CPI), rounded up to the nearest multiple of $5.
The measure aims to simplify everyday micropayments in bitcoin, removing the bureaucratic burden of tax filings. The state’s tax commissioner will also be prohibited from lowering this limit once established.
The bill also introduces provisions for the bitcoin mining sector. Residents will be allowed to mine bitcoin in residential areas, provided they comply with local noise ordinances and municipal regulations.
Industrial-scale mining operations will be permitted in any area designated for industrial use, with the assurance that they will not face regulatory discrimination compared to other similar commercial activities. The state will no longer be allowed to reclassify land in ways that could harm mining operations without following proper public notice and consultation procedures.
The Ohio Blockchain Basics Act removes several bureaucratic barriers for businesses involved with digital assets. Activities such as mining, staking, node management, peer-to-peer crypto trading, or crypto swap software development will no longer require a license.
The bill also establishes that mining and staking services will not be considered securities offerings or investment contracts.
Another key aspect of the legislation is the protection of the right to self-custody. The Ohio government and its agencies will be prohibited from implementing rules that prevent citizens from holding their cryptocurrencies through hardware wallets or non-custodial wallets.
The bill, primarily backed by Republican Representative Steve Demetriou, will now move to the state Senate before heading to Governor Mike DeWine’s desk.
