Simply put
- The Ohio House of Representatives has taken a step forward with a new bill aimed at providing a $200 tax exemption on capital gains from cryptocurrency.
- This legislation also prevents state and local governments from limiting the use of digital assets or interfering with personal hardware and self-hosted wallets.
- If the bill passes, it will offer protections for both residential and industrial cryptocurrency mining operations against discriminatory zoning laws.
On Wednesday, the Ohio House voted to advance a new cryptocurrency bill, signaling the state’s commitment to providing protections for industry participants.
Once signed by Governor Mike DeWine, the Ohio Blockchain Basic Act will make it illegal for state and local authorities to restrict the use of digital assets for payments or to meddle with individuals’ hardware wallets.
Subject to local regulations, mining operations can take place in industrial zones if they permit digital asset mining by individuals in residential areas while complying with existing regulations.
The bill also seeks to ensure that local governments cannot alter zoning laws concerning mining areas without proper notification and opportunities for public comments, giving businesses the right to contest any discriminatory zoning decisions.
Those engaged in mining, staking, exchanging assets, or operating blockchain nodes will not fall under the Remittance, Security, and Investment Act.
The capital gains exemption applies to all cryptocurrency transactions valued under $200. Following a vote of 68-26, House Bill 116 is set to move to the state Senate for further evaluation.
Changing tide
Sponsored by Senator Steve Demetriou, House Bill 116 was initially introduced in February and received approval from the House Technology and Innovation Committee before being passed by the full House on Tuesday.
This development comes amid ongoing discussions around cryptocurrency regulations this year, including recent major stablecoin reforms passed by the U.S. Senate.
It further demonstrates a broader trend in state legislation aimed at solidifying the rights of cryptocurrency users and service providers, following Kentucky’s implementation of similar laws in March.
“We want to show that Ohio is ready to embrace the future of blockchain technology and digital assets,” Demetriou stated prior to the vote.
“With this bill, Ohio will be one of the first states to establish a practical regulatory framework for these emerging technologies and markets,” he emphasized.
breaking: Ohio’s HB 116 passes through the home with extensive bipartisan support. 68–26.
The majority whip Leadership offers the strongest Bitcoin rights bill to pass US state chambers
This Act:
Protects your self-reliance. Your key, your coin.
✅…– Satoshi Action Fund (@satoshiactfund)
Other states, including Arizona, Florida, California, Texas, and Wyoming, are also looking into new regulations surrounding cryptocurrencies.
The Satoshi Action Fund, an organization advocating for crypto policy reform at the state level, commended the bill’s passage.
They noted this approval as a “clear sign” that lawmakers are beginning to protect the rights of industry participants while promoting innovation in Ohio, according to Dennis Porter, the organization’s CEO and co-founder.
He praised the $200 capital gains exemption as a “common-sense adjustment” that can help everyday Bitcoin users navigate tax complexities more easily.
Porter expressed optimism about the bill’s momentum as it heads to the Senate, noting that Ohio is poised to become a national leader in Bitcoin and digital asset regulation.
Representative Steve Demetriou did not provide comments when approached for a statement.
