The Ohio House of Representatives advanced the Blockchain Basics Act, which aims to exempt cryptocurrency transactions under $200 from capital gains tax and protect digital asset users from government restrictions.
Key provisions of the bill include:
- Prohibiting state and local governments from limiting the use of digital assets as payment or interfering with hardware and self-hosted wallets.
- Allowing residential crypto mining subject to local rules and permitting industrial mining operations in designated zones.
- Requiring local governments to provide notice and commentary opportunities before rezoning mining operations, with mining businesses able to appeal discriminatory actions.
- Excluding individuals engaged in mining, staking, asset exchanges, or blockchain node operations from certain money transmitter, security, and investment regulations.
Sponsored by Representative Steve Demetriou, House Bill 116 passed the House by a 68-26 vote and now moves to the Senate. If signed by Governor Mike DeWine, it would establish Ohio as an early adopter of a regulatory framework supporting blockchain technology and digital assets.
This legislation aligns with national efforts to clarify cryptocurrency rules, following recent stablecoin reforms by the U.S. Senate and state-level initiatives such as Kentucky’s self-custody law passed earlier this year.
Dennis Porter, CEO of the Satoshi Action Fund, praised the bill’s passage as a positive step toward protecting crypto users and fostering innovation in Ohio, noting the practical benefit of the $200 capital gains tax exemption for everyday Bitcoin transactions.