The Ohio House of Representatives just passed the Ohio Blockchain Basics Act (HB 116). This is a big move in the direction of providing a regulatory framework for digital assets with more clarity in the state. The bill, sponsored by Representative Steve Demetriou, seeks to protect industry participants, prevent restrictions on digital asset usage for payments, and safeguard the use of hardware wallets. The bill, HB 116, received unanimous support in the House Technology and Innovation Committee. On Tuesday, the full House passed it unanimously with a clear 68-26 vote. The bill is now moving to the state Senate for its consideration. If it succeeds and if Governor Mike DeWine then signs it into law, sweeping new auto industry regulations will come into effect in Ohio.

Key Provisions of the Ohio Blockchain Basics Act

HB 116 includes a number of other provisions intended to create a more attractive climate for cryptocurrency and blockchain technology in Ohio. The bill does include one important provision. It prohibits state and local governments from restricting the use of digital assets to buy goods or services. This policy would help to guarantee that individuals and businesses alike can transact through cryptocurrencies without excessive restrictions.

One major provision protects Americans’ rights to use hardware wallets, or “self-hosted” wallets, with minimal government interference. In doing so, this protection highlights the crucial importance of self-custody within the cryptocurrency ecosystem. It gives them the tools they need to take control of their digital lives.

Beyond these protections, the bill goes on to exempt crypto transactions under $200 from capital gains taxes. This exemption would apply to all crypto transactions under the dollar threshold of $200. It ensures for users tax relief by taxing the smaller, more frequent transactions.

Industry Reaction and Broader Implications

Industry advocates are thrilled with the passage of HB 116. They view it as a major leap forward in supporting innovation in Ohio. Dennis Porter, CEO of the Satoshi Action Fund, expressed support for the bill’s passage as an encouraging signal.

"clear signal encouraging innovation in the Buckeye State." - Dennis Porter, CEO and co-founder of the Satoshi Action Fund

Fellow Republican Representative Steve Demetriou echoed Blasdel’s enthusiasm, seeing great things coming from the bill.

"We're getting ready to show the country that Ohio is ready to embrace the future of our economy and blockchain technology and digital assets" - Representative Steve Demetriou

HB 116 is part of a broader trend of state laws enacted to codify rights for crypto users and providers. Other states, including Arizona, Florida, California, Texas, and Wyoming, are considering new crypto regulations, reflecting a growing recognition of the need for clear and consistent rules governing the digital asset space.

Future Outlook

With the bill now on its way to the state Senate, its future is far from secure. If passed by the Senate, that bill would then be sent to Gov. Mike DeWine to be signed into law. If it passes, Ohio will join an increasing number of states. All eyes are on these states as they seek to position themselves as leaders in blockchain technology and digital asset innovation.