Ohio House Approves “Blockchain Basics Act” for Tax-Free Crypto Payments

In a decisive 68–26 vote, Ohio’s House of Representatives approved House Bill 116, commonly referred to as the Blockchain Basics Act. The legislation, a bipartisan initiative supported by Rep. Steve Demetriou aims to position Ohio at the forefront of digital asset policy in the United States.

At its core, the bill prohibits the imposition of any additional fees, taxes, assessments, or charges by state or local governments on digital asset transactions—requiring that crypto payments carry no greater burden than payments made in traditional U.S. dollars. In practical terms, this would create a tax exemption for cryptocurrency transactions under $200, effectively simplifying everyday crypto use and bolstering grassroots adoption.

The bill also enshrines several rights deemed fundamental by the crypto community. It legally protects individuals’ right to self-custody by allowing the use of hardware wallets or “self-hosted” wallets without interference from state or local authorities. It exempts personal crypto mining, staking, and peer-to-peer exchanges from “money transmitter” licensing if conducted in compliance with existing local zoning rules. Industrial miners are also shielded from discriminatory zoning regulations, with businesses allowed to contest unfavorable decisions.

Additionally, HB 116 requires Ohio’s public retirement systems to evaluate the risks and benefits of investing in crypto ETFs. A formal report detailing their findings must be submitted to the state legislature within a year.

Ohio’s move aligns with a broader national trend. States such as New Hampshire, Michigan, Texas and Wyoming have all taken proactive steps in recent years to clarify their digital asset policies. Federally, the U.S. Senate recently passed the GENIUS Act, which focuses on creating a stablecoin regulatory framework. Rep. Demetriou emphasized that the bill reflects Ohio’s ambition to lead in financial innovation, stating, “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.”

Market analysts view this kind of regulatory clarity as a confidence boost for the crypto sector. By removing minor frictions and protecting self-custody, the bill could accelerate consumer adoption and incentivize local blockchain development. Some observers also suggest the measure may help de-risk participation in meme coins and microtransactions by removing the capital gains reporting burden on negligible-value trades.

Although HB 116 passed the House comfortably, it must still clear the Ohio Senate and be signed by Governor Mike DeWine before it can become law. The Senate’s Banking and Financial Institutions Committee is expected to review the bill soon. Past crypto-related measures in Ohio have encountered delays or died in committee, so its ultimate success is not guaranteed.

Meanwhile, other crypto-friendly legislative efforts are unfolding across the state. Sen. Niraj Antani continues to push a proposal enabling tax payments in crypto, originally introduced in September 2024. Rep. Derek Merrin and Sen. Sandra O’Brien have both floated bills to create a Bitcoin reserve fund managed by the state—intended to hedge against currency devaluation and provide long-term financial security for Ohio.

With HB 116, Ohio is offering a comprehensive policy framework that could serve as a national model. The bill not only provides tax relief for crypto payments but also protects core user rights, ensures fair treatment for mining operations, and takes early steps toward institutional investment review. Should the Senate approve and the governor sign the measure, Ohio would solidify its position as a leading U.S. jurisdiction for blockchain innovation and digital asset adoption.