The Ohio House of Representatives has passed House Bill 116. The bill, titled the Ohio Blockchain Basics Act, received a decisive vote of 68 to 26, highlighting strong bipartisan support.
This legislation exempts crypto transactions under $200 from capital gains taxes in Ohio. It also includes provisions for crypto mining operations, marking a major step toward crypto adoption on the state level.
Crypto Tax Exemption Bill Clears Ohio House
State Representative Steve Demetriou is the bill’s primary sponsor. HB 116 was first introduced in February. It passed the House Technology and Innovation Committee with unanimous bipartisan support in a 13-0 vote before advancing to the full House.
In his remarks, Representative Demetriou stressed that the bill creates a ‘common sense regulatory framework.’
“Once we pass this bill, we will become one of the first states in the country to create a common-sense regulatory framework for these cutting-edge technologies and the industries. It’s going to show the nearly 2 million Ohioans who own digital assets, as well as entrepreneurs in the blockchain and digital asset industries, that we stand with them and that we support this growing technology and industry,” he said.
The legislation’s focus on tax exemptions for small crypto transactions is particularly noteworthy. By removing capital gains taxes on transactions below $200, the bill intends to encourage the everyday use of cryptocurrencies. This could foster broader adoption among Ohio residents.
“Ohio just changed the game for Bitcoin. You can spend up to $200 per transaction on anything in Ohio, without owing taxes! Imagine paying for dinner at a restaurant with Bitcoin, and not having to pay capital gains taxes. Bullish,” a trader posted.
The bill also promotes self-custody by preventing state or local governments from restricting individuals’ right to accept digital assets as payment for legal goods and services. It allows individuals to store digital assets using hardware or self-hosted wallets without interference.
Furthermore, HB 116 seeks to permit digital asset mining in residential areas, contingent on compliance with local ordinances and regulations.
“A political subdivision of this state shall not adopt or enforce an ordinance, resolution, regulation, or order specific to digital asset mining businesses that does not also apply to other similarly situated businesses,” the bill reads.
The bill exempts those involved in digital asset mining, staking, or exchange from requiring a money transmitter license. A key provision clarifies that businesses offering crypto mining or staking services are not considered to be offering securities or investment contracts, providing legal clarity.
Now, HB 116 will move to the Ohio Senate. If it passes the Senate, it will head to Republican Governor Mike DeWine for final approval.
Meanwhile, HB 116 isn’t the only crypto-related bill in the Buckeye State. It is also considering a Bitcoin reserve bill, Senate Bill 57. The Financial Institutions, Insurance, and Technology Committee is currently evaluating the legislation.
The bill aims to integrate cryptocurrency into Ohio’s state financial system. It allows government entities to use blockchain technology and accept cryptocurrency for payments such as taxes and fees. SB 57 also proposes the creation of the Ohio Bitcoin reserve, which would manage Bitcoin investments with strict custody and security protocols.
The state treasurer would be responsible for acquiring Bitcoin as an investment and holding it for at least five years before converting it.
Several other states have introduced similar digital asset bills. In fact, in May, New Hampshire’s Governor signed a Bitcoin reserve bill into law, becoming the first US state to authorize investments in digital assets.
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