Ohio House Approves Bill Easing Tax Burden on Small Crypto Transactions

By: Isha Das

The Ohio House of Representatives has recently passed a groundbreaking bill designed to provide a variety of protections for cryptocurrency activities within the state, particularly focusing on smaller transactions. Officially known as House Bill 116, or the Ohio Blockchain Basics Act, the legislation proposes that crypto transactions valued under $200 should be exempt from capital gains taxes. This move marks a significant shift in how the state handles digital currencies, potentially setting a precedent for other states considering similar measures.

The legislation, which successfully passed through the House by a 70-26 vote, is now on its way to be reviewed by the Ohio State Senate. Should it receive the Senate's approval and subsequently be signed into law by Governor Mike DeWine, the bill would legally insulate various crypto activities such as mining and staking. The bipartisan support for this bill was evident as it previously passed the state's Technology and Innovation Committee with a unanimous 13-0 vote, showcasing a broad agreement on the need to foster a friendlier environment for digital asset innovation and usage.

This legislative development is part of a broader strategy to make Ohio a more favorable jurisdiction for cryptocurrency enthusiasts and businesses. By reducing the tax burdens associated with small-scale crypto transactions, the state aims to encourage more citizens and enterprises to engage with digital currencies without the looming concern of potential taxes on minor profits. Larry Obhof, a notable supporter of the bill, argued that the approach not only benefits everyday users but also aligns with modern economic practices where digital currencies are steadily becoming integral.