Ohio House Approves $200 Crypto Capital Gains Exemption Bill

The Ohio House of Representatives has unanimously approved House Bill 116, also known as the “Bitcoin Rights” bill, which is now advancing to the Senate for final approval. This bill introduces a $200 tax exemption on capital gains from cryptocurrency transactions at the state level, referred to as the “de minimis” exemption. This measure aims to relieve Ohio residents from the burden of tracking and reporting taxes on small crypto transactions, such as everyday purchases and tips. The move is anticipated to enhance crypto adoption across the state by simplifying the use of digital assets in daily life.

The bill includes several key provisions to protect and support cryptocurrency users and businesses. These include establishing a clear legal framework for Bitcoin and other digital asset holders, protecting the self-custody of crypto assets, and granting the right to operate mining farms and blockchain nodes. Additionally, the bill exempts activities like mining, staking, and node operations from being classified under money transmitter, securities, or investment laws. These measures are designed to foster innovation in the blockchain and crypto space by reducing regulatory uncertainty.

If the bill becomes law, the Ohio Blockchain Basics Act will impose several limitations on government actions. It will ban state and local governments from restricting the use of digital assets as payment, prohibit interference with self-hosted wallets, and prevent the rezoning of mining operations without proper notice. Representative Steve Demetriou, a key supporter of the bill, emphasized that passing this legislation would position Ohio as one of the first states in the country to create a sensible regulatory framework for these cutting-edge technologies and industries.

The bill is now moving to the Ohio Senate for approval. If it passes there, it will be sent to Governor Mike DeWine for his final signature into law. Supporters of the bill are optimistic about its chances of success, citing its focus on innovation, individual rights, and clear regulatory guidance. This could potentially make Ohio a national leader in crypto-friendly legislation.