Ohio relies on crypto: New law exempts from tax burden and promotes education!

Ohio relies on crypto: New law exempts from tax burden and promotes education!

Ohio is taking a significant step toward its digital future by passing House Bill 116, also known as the Ohio Blockchain Basics Act. This new law, which passed the Ohio House of Representatives by a vote of 68-26, aims to promote digital financial innovation and make it easier to use cryptocurrencies. A central goal of HB 116 is to exempt crypto owners from smaller tax burdens and reduce regulatory hurdles for crypto miners and users, such as it-boltwise.de reported.

Rep. Steve Demetriou, a lead sponsor of the bill, emphasized the importance of education and bipartisan support for crypto legislation. He described the law as creating a “sensible regulatory framework” that should enable the everyday use of cryptocurrencies to be promoted. An important aspect of the law is the exemption from capital gains taxes on crypto transactions under $200, which is intended to support the acceptance of digital currencies among the general population, such as beincrypto.com added.

Special provisions for crypto mining and transactions

HB 116 also contains specific provisions for crypto mining operations. So it is allowed in residential areas as long as local regulations are followed. Additionally, individuals engaged in digital asset mining, staking or exchange may be exempt from the need for a money transmission license. This promotes self-custody by prohibiting state or local governments from restricting the acceptance of digital assets as payment.
Bitcoin is the only cryptocurrency that qualifies for investment under the new Bitcoin Reserve Act initiated by the Ohio Strategic Cryptocurrency Reserve Act (House Bill 18). This law allows the state treasurer to invest up to 10% of certain public funds in large-cap cryptocurrencies.

Demetriou sees Bitcoin as a key factor in Ohio's future and believes digital assets will be crucial to the state's economic development. Nearly two million Ohioans already own digital assets, underscoring the relevance of these technologies to the regional economy.

The path to the legislature

HB 116 was first introduced in February 2023 and received unanimous support (13-0) in the House Technology and Innovation Committee. After approval in the House of Representatives, the bill now heads to the Ohio Senate. If approved there, it would go to Republican Gov. Mike DeWine for final approval.

In addition, the state of Ohio is also considering a Bitcoin reserve law (Senate Bill 57), which aims to integrate cryptocurrencies into the state financial system. SB 57 will allow government entities to use blockchain technology and accept cryptocurrencies for payments such as taxes and fees. The state treasurer would be responsible for acquiring Bitcoin and would have to hold it for at least five years before a conversion occurs.

The developments in Ohio reflect a growing trend as several other states have passed similar digital asset laws. Ohio legislation aims to create an enabling environment for the digital economy and deliver long-term financial benefits for the state and its citizens.