Ohio legislators have introduced a new bill aimed at ensuring fair taxation for digital assets, including cryptocurrencies. The bill eliminates the possibility of additional taxes on these assets, creating a more favorable environment for their use in the state.
Key Provisions of the Bill
Dubbed the 'Ohio Blockchain Basics Act,' the bill prevents the imposition of extra fees and taxes on digital assets when used for payments. Standard sales taxes will still apply, but no additional levies on crypto transactions. The bill also ensures that state agencies and political subdivisions cannot prohibit businesses and individuals from accepting cryptocurrency as payment.
Self-Custody and Mining Rights
Beyond taxation, the bill enshrines the right for Ohio residents to self-custody their digital assets. It allows the storage of crypto in hardware wallets or self-hosted solutions, crucial for those preferring full control over their assets. The bill also clarifies that crypto-related activities like staking and mining will not require 'money transmission' licensing. Crypto mining operations will be protected from undue restrictions in industrial zones, provided local zoning laws are followed.
Ohio Bitcoin Reserve Evaluation
Another significant aspect of the bill is its mandate for state retirement funds to assess the risks and benefits of investing in cryptocurrency exchange-traded funds (ETFs). Lawmakers would receive a report within a year, potentially opening the door for state-backed crypto investments.
If passed, House Bill 116 could make Ohio one of the most crypto-friendly states in the U.S., setting a precedent for other states to integrate digital assets into their financial frameworks without imposing additional regulatory burdens.
