Ohio is taking a significant step towards becoming a leading state in Bitcoin and digital asset regulation with its latest legislative efforts. The Ohio Blockchain Basics Act (HB 116) was unanimously passed by the state’s House Technology Committee on July 17, advancing the bill to the next stage of review. This move has garnered strong bipartisan support, with a 13-0 vote in favor of the bill.
Representative Steve Demetriou emphasized that the bill is designed to empower individuals rather than large financial institutions. He highlighted the decentralized nature of cryptocurrencies and acknowledged the passion of nearly two million Ohioans who own digital assets.
The Ohio Blockchain Basics Act, also known as the Bitcoin rights bill, defines key legal concepts related to blockchain protocols, digital asset mining, and individual rights concerning self-custody and node operations. The legislation aims to provide protection for individuals and businesses operating in the blockchain space, particularly those involved in Bitcoin mining or running decentralized nodes.
One notable feature of HB 116 is the “de minimis” exemption for Bitcoin payments under $200. This exemption would eliminate capital gains taxes on small purchases made with Bitcoin, making it easier for people to use the cryptocurrency for everyday transactions.
Dennis Porter, CEO of Satoshi Action Fund, praised the bill as one of the most robust Bitcoin rights legislations in any US state. He believes that the tax exemption will encourage more people to use Bitcoin as a practical medium of exchange, rather than just as an investment asset.
In addition to HB 116, Ohio lawmakers are considering two other crypto-focused bills, HB 18 and SB 57, which aim to establish state-level reserves of Bitcoin and other digital assets. These bills outline specific criteria for investments in exchange-traded products and secure custody solutions.
Ohio’s legislative efforts align with a broader trend among several US states that are exploring cryptocurrency regulations. States like Arizona and New Hampshire already have Strategic Bitcoin Reserve laws in place, while others such as Texas, North Carolina, Montana, Oklahoma, and Florida are advancing similar legislation.
As competition between states intensifies, Ohio’s proactive approach to crypto regulation could have a significant impact on shaping the future of cryptocurrency policy at the state level. With strong bipartisan support and a clear focus on empowering individuals in the digital asset space, Ohio is positioning itself as a key player in the evolving landscape of blockchain technology and cryptocurrency regulation.