Ohio House of Representatives Passed House Bill 116

The Ohio House of Representatives passed House Bill 116, the Ohio Blockchain Basics Act, on June 18, 2025, with a 68-26 vote. The bill exempts cryptocurrency transactions under $200 from state capital gains taxes, aiming to simplify small purchases like coffee or tips and boost everyday crypto use. Known as the “de minimis” exemption, this measure eliminates the need to track and report capital gains for these transactions. The legislation also protects self-custody rights, allows crypto mining in residential and industrial zones (subject to local regulations), and exempts mining, staking, and node operations from money transmitter or securities laws.

It now heads to the Ohio Senate, and if approved, will go to Governor Mike DeWine for final signature. Supporters, including the Satoshi Action Fund, praise it as one of the strongest Bitcoin rights bills in the U.S., positioning Ohio as a leader in crypto-friendly policy. By exempting small cryptocurrency transactions (under $200) from state capital gains taxes, the bill reduces friction for everyday purchases, potentially encouraging more Ohioans to use Bitcoin and other cryptocurrencies for routine transactions like coffee, groceries, or tips. This could drive mainstream adoption and normalize crypto as a payment method.

Simplified tax treatment and clear regulatory frameworks for crypto mining, staking, and node operations could attract blockchain businesses and investors to Ohio, fostering job creation and innovation in the crypto sector. The state’s pro-crypto stance may position it as a hub for blockchain technology in the U.S. Eliminating the need to track and report capital gains for small transactions reduces administrative burdens for individuals, making crypto use more practical and appealing.

While the tax exemption may reduce state revenue from capital gains taxes on small transactions, the volume of such transactions is likely low, minimizing fiscal impact. Increased economic activity from crypto adoption could offset this through other tax streams (e.g., sales or income taxes). The bill’s provisions protecting self-custody rights and exempting mining, staking, and node operations from money transmitter or securities laws provide legal clarity, reducing regulatory risks for individuals and businesses. This could encourage more Ohioans to engage in decentralized finance (DeFi) activities.

Allowing crypto mining in residential and industrial zones, subject to local regulations, may lead to tensions over noise, energy use, or environmental concerns, requiring municipalities to adapt zoning laws or face community pushback. As one of the strongest Bitcoin-friendly bills in the U.S., Ohio’s legislation could inspire similar laws in other states, accelerating nationwide crypto adoption and creating a patchwork of state-level regulations that may influence federal policy.

By making small crypto transactions easier, the bill could appeal to unbanked or underbanked populations, offering an alternative to traditional financial systems. The bill may deepen ideological divides, with supporters viewing it as a step toward financial freedom and innovation, while critics may see it as enabling speculative or illicit activities.

Crypto enthusiasts, blockchain businesses, libertarian-leaning policymakers, and groups like the Satoshi Action Fund. The bill empowers individuals by protecting self-custody and reducing government oversight of small transactions. Clear regulations and tax exemptions foster a welcoming environment for blockchain startups and developers. Simplifying taxes for small transactions aligns with crypto’s original vision as a peer-to-peer currency.

Ohio’s proactive stance could attract crypto investment, positioning the state ahead of others in a growing industry. Representatives Thomas Hall and Scott Wiggam (bill sponsors), Satoshi Action Fund, Ohio Blockchain Council. Traditional financial institutions, some environmental groups, regulatory advocates, and policymakers concerned about consumer protection or illicit activity.

Critics may argue the exemption creates a loophole that could be exploited, even if limited to small transactions, and erodes tax fairness. Crypto mining’s energy consumption could strain Ohio’s grid or conflict with sustainability goals, especially in residential areas. Without robust federal oversight, critics worry that relaxed regulations could expose consumers to fraud, scams, or volatile crypto markets.

Some may fear that easing crypto use could facilitate money laundering or other illegal transactions, despite existing anti-money laundering laws. Environmental advocacy groups, consumer protection agencies, or legislators prioritizing fiscal conservatism or regulatory caution. The bill passed with bipartisan support (68-26) in the Ohio House, but the vote split suggests some resistance, likely along ideological lines. Republicans, who dominate Ohio’s legislature, may largely back the bill for its free-market principles, while some Democrats may oppose it over concerns about regulation or equity. The Ohio Senate’s response and Governor DeWine’s stance (as a Republican with a pragmatic record) will be cricritical.

Pro-crypto states (e.g., Texas, Wyoming) versus those with stricter regulations (e.g., New York). This could fuel a broader debate over federal versus state authority in crypto policy. Younger, tech-savvy demographics may embrace the bill as forward-thinking, while older or less tech-fluent groups may view crypto with skepticism or distrust. Urban areas with tech hubs may see more benefits from crypto adoption, while rural communities could face challenges with mining-related disruptions or limited access to crypto infrastructure.

The bill’s fate in the Ohio Senate will hinge on balancing economic benefits with regulatory and environmental concerns. Amendments addressing energy use or local zoning could smooth passage. DeWine’s signature is not guaranteed; he may weigh public opinion, economic impacts, and potential federal conflicts.

If signed into law, Ohio’s model could pressure other states to adopt similar policies, intensifying competition for crypto investment and shaping the 2026 midterm election narratives around tech and finance. The bill may prompt federal regulators (e.g., IRS, SEC) to clarify crypto tax and securities rules, especially if state-level exemptions create inconsistencies.