Ohio House Passes Blockchain Act 68-26, Advancing Crypto Regulation

The Ohio Blockchain Basics Act has made significant progress, advancing through the House of Representatives with a 68-26 bipartisan vote. This legislation aims to establish a comprehensive regulatory framework for digital assets within the state, ensuring that users maintain control over their private keys without undue governmental intrusion. The bill prohibits state and local governments from restricting the use of digital assets as payment methods or interfering with individuals’ use of hardware and self-hosted wallets, reinforcing the principle of self-custody.

The bill also addresses the operational landscape for crypto mining by permitting individual miners to operate in residential areas, subject to local ordinances, and allowing mining businesses to function within industrial zones if they comply with existing regulations. This approach balances community concerns with the economic potential of blockchain technology. Additionally, the legislation mandates proper notice and comment opportunities before any rezoning actions affecting mining operations, granting affected businesses the right to appeal discriminatory zoning decisions.

Beyond user protections, the Ohio Blockchain Basics Act introduces critical legal clarifications by exempting individuals engaged in mining, staking, asset exchange, or blockchain node operations from money transmitter, security, and investment laws. This exemption reduces regulatory burdens, fostering a more accessible environment for participation in the crypto ecosystem. Moreover, the bill provides a capital gains tax exemption for crypto transactions valued under $200, a measure praised by industry advocates for reducing tax complexity for small-scale users. This exemption aligns with broader efforts to encourage everyday adoption of digital assets by minimizing administrative hurdles.

Ohio’s legislative progress follows a growing trend among U.S. states to codify protections and regulatory clarity for crypto users and businesses. The bill’s advancement comes shortly after the U.S. Senate passed the GENIUS Act, focusing on stablecoin reform, underscoring a nationwide momentum toward structured crypto regulation. States such as Kentucky, Arizona, Florida, California, Texas, and Wyoming are also actively pursuing crypto-related legislation, reflecting a competitive landscape where states vie to become hubs for blockchain innovation. Ohio’s bill, sponsored by Representative Steve Demetriou, positions the state as a forward-thinking jurisdiction ready to embrace the economic opportunities presented by digital assets.

The Satoshi Action Fund, a prominent advocate for state-level crypto policy reform, hailed the bill’s passage as a “clear signal” of growing legislative support for protecting industry participants while encouraging innovation. CEO Dennis Porter expressed optimism that the momentum generated by the House vote would continue in the Senate, potentially establishing Ohio as a national leader in digital asset policy. Representative Demetriou emphasized the bill’s role in setting a “common-sense regulatory framework” that balances innovation with consumer protections, highlighting Ohio’s ambition to lead in blockchain technology adoption. As the bill moves to the Ohio State Senate, stakeholders across the crypto community are closely monitoring its progress, recognizing its potential to influence regulatory approaches nationwide.

The Ohio Blockchain Basics Act marks a pivotal development in state-level crypto regulation by affirming user rights, clarifying legal frameworks, and supporting mining operations. Its passage through the House signals bipartisan recognition of blockchain’s economic significance and the necessity for balanced governance. As the bill advances to the Senate, Ohio stands poised to become a model for pragmatic and innovation-friendly crypto legislation, potentially shaping the future regulatory landscape across the United States.