Ohio lawmakers have introduced House Bill 116, also known as the "Blockchain Foundations Act," which seeks to prevent the state from imposing additional taxes on digital assets used for payments.
Key Provisions of the Blockchain Foundations Act
- Tax Exemption for Crypto Payments: The bill, introduced by Representative Steve Demetriou on February 24, amends existing legislation to ensure digital assets are not subject to extra taxes beyond those applied to traditional fiat transactions.
- Definition of Digital Assets: Cryptocurrencies, stablecoins, and NFTs are explicitly classified as "digital assets." While standard taxes (e.g., state/sales tax) still apply, no new levies can be imposed.
- Payment Rights: State agencies cannot prohibit individuals or businesses from accepting crypto as payment for goods/services.
- Self-Custody Rights: Ohio residents retain the right to manage assets via hardware/self-hosted wallets and participate in staking.
Regulatory Clarity for Crypto Activities
- No Licensing Requirements: Mining, staking, and exchanging crypto assets do not require a "money transmission" license under current Ohio law.
Mining Protections:
- Permitted in residential zones (with local zoning compliance).
- Explicitly allowed in industrial zones, with safeguards against unfair zoning changes.
Ohio’s Crypto-Focused Initiatives
- State Retirement Fund Evaluation: The bill mandates Ohio’s public retirement funds to assess risks/benefits of investing in crypto ETFs and report findings to the General Assembly within a year.
Legislative Momentum: Ohio has actively pursued crypto-friendly policies, including:
- Proposals to accept crypto for tax payments.
- A 2025 bill by Senator Sandra O’Brien to create an "Ohio Bitcoin Reserve Fund" (5-year holding period).
FAQs
1. Does this bill eliminate all taxes on crypto transactions?
No—standard taxes (e.g., sales tax) still apply, but the bill prevents additional crypto-specific taxes.
2. Can businesses legally refuse crypto payments in Ohio?
Yes, but the bill ensures state agencies cannot ban crypto acceptance.
3. How does the bill protect crypto miners?
It allows residential mining (with zoning rules) and shields industrial miners from abrupt zoning changes.
👉 Explore how Ohio leads in crypto innovation
The "Blockchain Foundations Act" reflects Ohio’s commitment to fostering a balanced regulatory environment for digital assets while protecting user rights and economic growth.
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