Ohio’s Bold Initiative to Lead in Bitcoin Regulation

Ohio is making significant strides to establish itself as a frontrunner in Bitcoin and digital asset legislation through a new regulatory approach.

On July 17, the Ohio House Technology Committee unanimously approved the Ohio Blockchain Basics Act (HB 116), moving the proposal forward for further legislative consideration. According to Satoshi Action Fund, a supporting organization, the bill received a unanimous 13-0 vote, showcasing strong bipartisan support.

In comments regarding the bill’s advancement, Representative Steve Demetriou expressed that it empowers individuals instead of concentrating power in large banks or financial institutions. He emphasized the bill’s commitment to the decentralized nature of cryptocurrency, reflecting the enthusiasm of nearly two million residents in Ohio who are invested in digital assets.

Key Features of Ohio’s Bitcoin Rights Legislation

HB 116 presents essential legal definitions regarding blockchain technology, digital asset mining, and the rights individuals hold concerning self-custody and operation of nodes.

The legislation seeks to safeguard both individuals and businesses involved in the blockchain industry, specifically those engaged in Bitcoin mining or operating decentralized nodes. A notable aspect of this bill includes a “de minimis” exemption for Bitcoin transactions under $200, meaning that small Bitcoin purchases would not incur capital gains taxes, thus removing a significant hurdle for using cryptocurrency in daily transactions.

Dennis Porter, the CEO of Satoshi Action Fund, lauded the bill as a powerful piece of legislation for Bitcoin rights in the United States. He highlighted that the tax exemption would facilitate the use of Bitcoin as a viable medium for everyday exchanges, rather than solely as an investment vehicle.

Other Legislative Proposals Focused on Cryptocurrency

Following the trend, HB 116 is one of three legislative proposals related to cryptocurrency under consideration by Ohio legislators.

The remaining two, HB 18 and SB 57, are designed to establish state-level reserves of Bitcoin and other digital currencies. The summary for HB 18 indicates that investments will be limited to exchange-traded funds with a minimum average market capitalization of $750 billion over the preceding year, and these investments must be held through regulated custodians or secure custody solutions.

Ohio’s regulatory efforts align with a broader trend emerging in several U.S. states. Arizona and New Hampshire currently have Strategic Bitcoin Reserve (SBR) laws in effect, while states like Texas, North Carolina, Montana, Oklahoma, and Florida are at various stages of considering similar measures.

As states compete for leadership in cryptocurrency regulation, Ohio’s recent actions could play a crucial role in defining the landscape of crypto policy on a state level.