Ohio has taken a decisive step toward establishing itself as a leading hub for Bitcoin and digital asset regulation through the advancement of a key legislative proposal. The Ohio Blockchain Basics Act, designated as HB 116, received unanimous approval from the House Technology Committee on July 17, marking a significant milestone in the state’s digital asset policy development. According to the advocacy organization Satoshi Action Fund, the bill passed with a 13-0 vote, reflecting broad bipartisan support.
Representative Steve Demetriou, who has been a vocal proponent of the bill, reportedly emphasized that the measure is designed to prioritize individual empowerment over institutional control. He noted that the legislation aligns with the decentralized principles of the cryptocurrency ecosystem and acknowledged the growing community of digital asset holders in Ohio, estimated at nearly two million residents.
Legal Clarity and Protection for Bitcoin Users
HB 116 introduces legal definitions for essential blockchain functions, including protocol standards, mining activities, and user rights related to self-custody and node operation. By codifying these foundational elements, the bill aims to provide legal certainty for both individuals and businesses operating in Ohio’s blockchain sector.
One notable feature of the legislation is a “de minimis” exemption for small Bitcoin transactions. This clause proposes that Bitcoin payments under $200 should be exempt from capital gains taxation, a move intended to eliminate a common obstacle that has hindered the use of digital currencies in everyday commerce. If enacted, it could encourage broader adoption of Bitcoin as a functional medium of exchange rather than solely as a speculative investment.
Industry figures have described the measure as one of the most comprehensive pieces of Bitcoin rights legislation introduced at the state level. Dennis Porter, who leads the Satoshi Action Fund, has pointed to the tax exemption provision as particularly important, arguing that it will enhance the practicality of using Bitcoin for daily transactions.
Broader Legislative Efforts in Ohio
HB 116 is part of a broader initiative by Ohio lawmakers to integrate digital assets into state governance and finance. Two additional bills—HB 18 and SB 57—are currently under consideration, both aiming to establish state-held reserves of Bitcoin and other digital assets.
The summary of HB 18 specifies that any state investments in digital assets must be made through exchange-traded products with a minimum average market capitalization of $750 billion over the prior year. Additionally, these investments must be managed via secure custody arrangements, including qualified custodians and registered investment entities.
Ohio Joins the National Push for State-Level Crypto Policy
Ohio’s efforts mirror a larger trend across the United States, where several states are moving forward with their own digital asset legislation. States like Arizona and New Hampshire have already implemented Strategic Bitcoin Reserve laws, while others such as Texas, Montana, North Carolina, Oklahoma, and Florida are exploring similar policy frameworks.
In positioning itself among the early movers, Ohio’s legislative strategy may have broader implications for shaping the direction of state-level crypto governance. The success of these measures could serve as a blueprint for other jurisdictions seeking to balance innovation, regulatory clarity, and economic growth in the blockchain era.
