Ohio House Passes Crypto Bill to Exempt Small Transactions from Capital Gains Tax

Highlights:

• The Ohio bill aims to promote the use of crypto as a form of day-to-day payments and shield mining activities.
• The bill allows crypto mining in homes and industrial zones if local rules are followed.
• Ohio law now protects self-hosted wallets and does not require licenses for crypto staking or mining.

The House of Representatives of Ohio has passed House Bill 116, known as the Ohio Blockchain Basics Act. Lawmakers voted 70-26 on Wednesday in favor of the bill. It now moves to the state Senate before heading to Governor Mike DeWine for final consideration. Proposed by Representative Steve Demetriou, the bill is meant to offer legal protections to businesses and users of digital assets.

Ohio House Passes ‘Bitcoin Rights’ Bill with $200 Tax Exemption for Crypto Users

Ohio’s House approved a bill providing a $200 capital gains tax exemption for small crypto transactions, eliminating reporting burdens on everyday crypto usage. The bill is expected to boost digital… pic.twitter.com/Iaw5GUtEOU

— Cryptemic News (@news_cryptemic) June 19, 2025

Demetriou stated that the bill targets two main aspects. It promotes the use of crypto as a form of day-to-day payments and shields mining activities against unreasonable impediments. Other states, however, are also moving forward with similar bills, and the number of digital asset-related proposals under discussion has surpassed 160 and is currently in at least 40 states. The passing of the bill in Ohio depicts an increasing movement towards legal certainty for crypto users at the state level.

Tax Breaks and Mining Rights Define Ohio’s Crypto Bill

The bill considers the tax exemption of the digital asset transactions worth less than $200. This implies that people are not required to report capital gains related to the purchase of crypto within this threshold. The exemption will commence in the initial tax year following the legislative act and will grow yearly in accordance with the Consumer Price Index.

Besides, the bill has opened the possibility of crypto mining in residential areas under the condition that the miners abide by local regulations, including noise control. It also gives mining businesses the right to operate in industrial zones if they meet the area’s existing standards. Local governments will not be allowed to rezone areas in a way that harms mining businesses without a formal notice and comment process. Once a business feels it is being singled out, it can go to court to oppose the rezoning act. Such measures provide that mining is subject to local law just like any other industrial activity.

The bill also forbids the state from imposing rules on mining operations. Any mandate or regulation to crypto miners should extend to other businesses of this nature. In particular, this assists in guaranteeing equitable treatment and prevents undesirable obstructions to those dealing in the digital asset business. The bill will stabilize the crypto mining operations in the state of Ohio as more individuals and companies become involved in crypto mining.

Wallet Custody and Node Operations Receive Legal Backing

The act serves to safeguard the rights to self-custody as well. It prevents the government and state agencies from banning or limiting the usage of hardware or self-hosted wallets. The residents are free to store their crypto without interference. The bill also states that people do not need a license to mine, stake, or run blockchain nodes. Developers who create or deploy software for crypto swapping are also covered.

Under the Ohio crypto bill, mining or staking services will not be considered securities or investment contracts. The bill now moves to the Senate, where lawmakers will continue their review.