Ohio passes blockchain bill allowing $200 tax-free Bitcoin payments

Unlock the Secrets of Ethical Hacking!

Ready to dive into the world of offensive security? This course gives you the Black Hat hacker’s perspective, teaching you attack techniques to defend against malicious activity. Learn to hack Android and Windows systems, create undetectable malware and ransomware, and even master spoofing techniques. Start your first hack in just one hour!

Enroll now and gain industry-standard knowledge: Enroll Now!

Ohio is making a bold push to become a leader in Bitcoin and digital asset regulation with its latest regulatory effort.

On July 17, the state’s House Technology Committee unanimously passed the Ohio Blockchain Basics Act (HB 116), advancing the bill to the next stage of legislative review. According to advocacy group Satoshi Action Fund, the bill secured a 13-0 vote, signaling strong bipartisan support.

Speaking on the passage, Representative Steve Demetriou stressed that the bill empowers individuals rather than large banks or financial institutions.

He also added that the bill emphasized the decentralized ethos of crypto and highlighted the passion of nearly two million Ohioans who own digital assets.

Ohio’s Bitcoin right bill

HB 116 outlines foundational legal definitions for blockchain protocols, digital asset mining, and individual rights surrounding self-custody and node operations.

The legislation also aims to protect individuals and businesses operating in the blockchain space, especially those engaged in Bitcoin mining or running decentralized nodes.

One of the bill’s key features is a “de minimis” exemption for Bitcoin payments under $200. If enacted, small purchases made with Bitcoin would not trigger capital gains taxes, removing a major barrier to using crypto for everyday transactions.

Dennis Porter, CEO of Satoshi Action Fund, praised the bill as one of the strongest Bitcoin rights legislation in any US state. He noted that the tax exemption would make it easier for people to use Bitcoin as a practical medium of exchange, not just an investment asset.

Other crypto-focused bills

HB 116 is one of three crypto-focused bills being considered by Ohio lawmakers.

Two others, HB 18 and SB 57, aim to establish state-level reserves of Bitcoin and other digital assets.

HB18 summary states:

“The investments are restricted to exchange-traded products with a minimum average market capitalization of $750 billion over the preceding twelve months, and must be held through secure custody solutions, qualified custodians, or registered investment companies.”

Ohio’s legislative push mirrors a growing trend across several US states. Arizona and New Hampshire already have active Strategic Bitcoin Reserve (SBR) laws, while Texas, North Carolina, Montana, Oklahoma, and Florida are in various stages of advancing similar legislation.

As competition between states heats up, Ohio’s latest move could prove pivotal in shaping the future of crypto policy at the state level.