TLDR
Ohio’s Blockchain Basics Act offers capital gains tax exemptions, paving the way for a crypto-friendly environment.
The bill ensures protections for crypto miners and users, simplifying regulatory burdens for blockchain activities in Ohio.
Ohio’s Blockchain Basics Act promotes crypto adoption with tax incentives and legal protections for digital asset activities.
Ohio leads with forward-thinking crypto regulation, offering tax exemptions and protections for mining and blockchain operations.
The Ohio House of Representatives has moved forward with a bill aimed at protecting digital asset users and providing tax relief for cryptocurrency transactions. On June 18, 2025, the House voted to advance the Blockchain Basics Act, which includes provisions to exempt capital gains taxes on crypto transactions up to $200. This bill, if signed into law, will establish Ohio as a leader in crypto-friendly regulations.
Key Features of the Ohio Blockchain Basics Act
The Blockchain Basics Act seeks to create a comprehensive framework for cryptocurrency and blockchain technology in Ohio. One of the key features of the bill is the exemption of capital gains taxes for crypto transactions worth $200 or less.
This provision is designed to simplify tax reporting for crypto users and attract more digital asset activity to the state. The bill also protects individuals involved in mining, staking, and blockchain node operations from being subject to money transmitter, security, and investment laws.
In addition to tax exemptions, the law aims to safeguard the rights of crypto users by prohibiting state and local governments from restricting digital asset use as payment. Furthermore, local governments will be barred from interfering with the use of self-hosted and hardware wallets. This ensures that individuals can freely use their digital assets without fear of regulatory obstacles.
Protection for Crypto Mining Operations
Another critical aspect of the bill concerns the regulation of cryptocurrency mining activities. The legislation would allow residential crypto mining operations, provided they adhere to local ordinances. Industrial-scale mining businesses, on the other hand, would be permitted to operate in industrial zones if they meet existing zoning requirements. The bill also provides protection for mining operations against discriminatory zoning changes.
If a local government seeks to change zoning regulations affecting mining businesses, the business owners would be given the right to appeal such decisions.
Rep. Steve Demetriou, who sponsored the bill, emphasized that this move would help Ohio become a hub for blockchain innovation. “Once we pass this bill, we’ll become one of the first states in the country to create a common-sense regulatory framework for these cutting-edge technologies and industries,” Demetriou stated before the vote. This provision is seen as a critical step in supporting both residential and industrial crypto miners in Ohio.
Exemptions for Crypto Users and Providers
The bill also includes measures aimed at supporting users and providers of digital assets. Those engaged in crypto mining, staking, asset exchange, or running blockchain nodes would be excluded from existing money transmitter, security, and investment laws.
This exclusion simplifies the legal landscape for those involved in the crypto industry, removing unnecessary regulatory burdens.
In addition, Ohio’s move to provide tax exemptions on transactions below $200 serves as a clear incentive for individuals and businesses to engage in crypto-related activities. This exemption is being hailed as a commonsense measure to avoid unnecessary tax complexity and foster greater participation in the growing blockchain ecosystem.
Ohio’s Role in the Growing Crypto Regulation Movement
Ohio’s decision to advance the Blockchain Basics Act aligns with broader trends across the United States, as several states explore regulations to create a more stable environment for crypto and blockchain technology. The bill passed the Ohio House with a 68-26 vote and now moves to the state Senate for further consideration. Other states, including Arizona, Florida, California, and Texas, are also examining how to regulate digital assets and attract blockchain businesses.
The Satoshi Action Fund, which advocates for crypto policy reform at the state level, praised the bill’s passage. CEO Dennis Porter called it a “clear signal” that lawmakers are becoming more supportive of the crypto industry. He expressed optimism that Ohio would emerge as a national leader in Bitcoin and digital asset policy. With growing interest in crypto regulation across the country, Ohio’s forward-thinking approach may serve as a model for other states considering similar measures.
If the bill passes in the Senate and is signed by Governor Mike DeWine, Ohio will join a growing number of states that are recognizing the potential of blockchain and digital assets. With this legislative step, Ohio is positioning itself as a leader in the future of digital finance.
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