Ohio lawmakers have passed House Bill 116, also known as the Blockchain Basics Act, advancing sweeping crypto-friendly reforms across the state. The legislation cleared the House of Representatives in a 70–26 vote and now moves to the Senate for consideration.
The bill seeks to exempt crypto payments under $200 from state capital gains tax and provides legal protections for activities like mining, staking, and wallet custody. Spearheaded by Republican Representative Steve Demetriou, the legislation aims to curb what he described as “discriminatory government overreach” toward digital assets.
Earlier the same day, the House Technology and Innovation Committee unanimously endorsed the bill in a 13–0 vote, showcasing rare bipartisan support for digital finance innovation.
Ohio’s move positions it among the leading states working to codify crypto rules. As of mid-2025, over 160 digital asset bills have been introduced across 40 U.S. states, according to tracking platform Bitcoin Laws—highlighting a growing race for regulatory clarity.
Bill Exempts Small Payments, Shields Crypto Users
A central feature of the bill is its exemption of crypto payments under $200 from capital gains taxes. The threshold would be adjusted annually based on inflation and rounded up to the nearest $5, giving Ohioans a more practical way to use digital assets for small transactions.
The bill also prohibits the Ohio tax commissioner from reversing these increases, providing long-term predictability for crypto users. Furthermore, it blocks state agencies from imposing restrictions on merchants who accept crypto, removing regulatory friction from day-to-day digital payments.
On the mining front, House Bill 116 guarantees that residents can mine crypto from their homes—so long as they comply with local nuisance laws. In industrial zones, legal mining businesses would be fully protected from burdensome restrictions not applied to similar commercial operations.
New Rules Deregulate Mining, Staking, and Wallets
HB 116 goes even further by declaring that a wide array of digital asset activities will not require a money transmitter license. These include mining, staking, node operations, and crypto-to-crypto swaps—activities often targeted by regulators in other states.
Crucially, the bill rebuffs the federal interpretation that mining or staking services may qualify as securities offerings. Instead, Ohio’s legislation defines these services as technical operations, not investment contracts—challenging recent actions by the SEC under the Biden administration.
The bill also fortifies the right to self-custody, barring any state-level attempts to restrict residents from using hardware wallets or self-hosted crypto solutions. This move underscores Ohio’s support for digital asset autonomy and individual control over financial tools.
Quick Facts
- Ohio House passed the Blockchain Basics Act 70–26.
- Crypto payments under $200 exempt from capital gains tax.
- Mining, staking, and node activity won’t need licenses.
- Hardware wallet use protected from future state restrictions.
