Ohio has allowed tax-free crypto transactions of up to $200 for customers.
The Ohio House of Representatives, which passed House Bill 116 or the Ohio Blockchain Basics Act, is a huge score for the digital asset industry. It is aimed at easing the everyday use of crypto within the state as well as limiting legal liability and regulatory problems for blockchain-based activities.
The legislation was approved in Ohio with a 70-26 voting margin and will now go to the Ohio Senate. Once the Senate endorses it, the bill will go for “final approval” to Governor Mike DeWine.
Key Crypto Protections and Tax Relief
The bill proposes to exempt all cryptocurrency transactions under a value of $200 from capital gains tax. Thus, there will not be any taxes on everyday crypto payments. This $200 threshold will be indexed each year to inflation based on the Consumer Price Index and rounded to the nearest $5.
Most importantly, the legislation prevents the state tax commissioner from lowering any limit once adjusted. Also, it prohibits any state department from adopting rules that prevent Ohioans from accepting crypto payments.
Boosting Crypto Mining and Digital Asset Innovation
The bill goes beyond tax relief. It protects against government interference for crypto mining and staking.
Residents can mine cryptocurrencies in residential areas, as long as they abide by noise and zoning rules.
Mining firms that obey local regulations may operate in industrial areas without being overloaded.
Miners in Ohio are similarly protected from sudden zoning changes that do not grant due process or public input.
If discrimination happens, affected miners can go to court.
Crypto enterprises will not be targeted unfairly through the legislation. It explains that providing mining and staking services is not a security or investment contract, which goes against federal interpretations in recent enforcement actions.
No Licensing Needed for Blockchain Operations
According to HB 116, people and businesses that take part in common blockchain activities—for instance, mining, staking, running a blockchain node, swapping crypto for crypto, and developing dApps—don’t need a money transmitter license. This deregulation removes significant roadblocks for Web3 developers and entrepreneurs.
The law would also protect self-custody rights, meaning Ohioans can store crypto in hardware wallets or self-hosted wallets without interference.
Ohio’s Crypto Ambitions Grow
Ohio is evidently seeking to become a blockchain hub, joining the ever-growing list of U.S. states that are pushing pro-crypto legislation. In January, lawmakers proposed the “Ohio Bitcoin Reserve Fund,” which is currently under consideration.
Policy has been introduced to attract the community’s attention toward blockchain innovation in the U.S. According to Bitcoin Laws, over 40 states have proposed more than 160 cryptocurrency-related laws, indicating widespread local momentum for Web3.
As Ohio positions itself to lead the next generation in the digital economy, Ohio House Bill 116 may serve as a template for other states trying to find the proper balance of technology, regulation, and economic opportunity.
