The Ohio House of Representatives has passed a bill promoting cryptocurrency use and protecting mining operations from government overreach.
Tax Exemptions for Small Crypto Transactions
A key feature of the bill is the exemption of crypto transactions under $200 from capital gains taxes. This threshold will rise annually with inflation and be rounded to the nearest $5 based on the Consumer Price Index. Once enacted, the bill would also prevent the tax commissioner from reducing that exemption, ensuring stability for small crypto users.
Normalizing Crypto Payments
The proposed law includes a clause preventing state government agencies from banning or restricting residents from accepting cryptocurrency as payment. Representative Steve Demetriou, a key supporter of the bill, stated that the legislation aims to simplify crypto payment usage and protect digital asset mining businesses from discriminatory government overreach.
Protecting Self-Custody Rights
The bill prohibits state agencies from restricting the use of hardware or self-hosted wallets for digital asset custody. This clause ensures that Ohio residents maintain control over their private keys and assets without unnecessary government interference.
The HB 116 legislation marks a significant step towards cryptocurrency adaptation at the state level, addressing the needs of modern digital asset users and creating conditions for the growth of the crypto industry.
