The Ohio House of Representatives has passed the Ohio Blockchain Basics Act (House Bill 116), which includes a provision to exempt capital gains taxes on Bitcoin payments under $200. The bill, which garnered bipartisan support with a 68-26 vote, now advances to the Ohio State Senate for further consideration.
Sponsored by Representative Steve Demetriou, HB 116 aims to establish a comprehensive framework for blockchain technology and digital assets in Ohio. A key feature of the legislation is the “de minimis” exemption, which eliminates capital gains taxes on small Bitcoin transactions, making it easier for residents to use cryptocurrency for everyday purchases like coffee or groceries without tax complications. This provision is seen as a significant step toward normalizing Bitcoin as a practical medium of exchange rather than solely an investment asset.
“Ohio is ready to embrace the future of our economy with blockchain technology and digital assets,”
Demetriou stated before the vote. He emphasized the bill’s focus on empowering individuals and aligning with the decentralized ethos of cryptocurrency, noting that nearly two million Ohioans own digital assets.
The legislation also provides legal protections for crypto users and miners, prohibiting state and local governments from restricting digital asset payments or interfering with self-hosted and hardware wallets. Additionally, it shields residential and industrial crypto mining operations from discriminatory zoning changes and exempts individuals involved in mining, staking, or node operations from certain financial regulations.
Dennis Porter, CEO of the Satoshi Action Fund, hailed the bill as “one of the strongest Bitcoin rights legislations in any U.S. state,” praising the tax exemption for reducing barriers to everyday crypto use.
“This is a commonsense fix that helps everyday Bitcoin users avoid unnecessary tax complexity,” Porter told Decrypt.
HB 116 is part of a broader crypto-focused legislative push in Ohio, alongside House Bill 18 and Senate Bill 57, which propose establishing state-level reserves of Bitcoin and other digital assets. These efforts mirror a growing trend across states like Arizona, New Hampshire, and Texas, which are also advancing crypto-friendly policies.
If passed by the Senate and signed into law by Governor Mike DeWine, the Ohio Blockchain Basics Act could position Ohio as a national leader in digital asset regulation and innovation.
