Ohio is taking a bold stance on cryptocurrency taxation with the introduction of House Bill 116, which aims to prohibit the state from imposing additional taxes on digital asset transactions. Sponsored by Representative Steve Demetriou and co-sponsored by multiple lawmakers, the bill seeks to ensure that crypto payments are treated the same as traditional fiat transactions, without extra fees or levies.

The bill explicitly states that the Ohio legislature cannot impose any new taxes or fees on digital assets when used for payments. However, standard state and sales taxes that apply to legal tender will still be enforced. The legislation defines “digital assets” broadly, including cryptocurrencies, stablecoins, and even non-fungible tokens (NFTs).

Dubbed the “Ohio Blockchain Basics Act,” the bill also affirms the right of individuals and businesses to accept cryptocurrency as payment without state interference. It further strengthens protections for self-custody, allowing residents to store their crypto in hardware or self-hosted wallets. Additionally, it clarifies that mining, staking, and crypto-for-crypto exchanges do not require a money transmission license under Ohio law.

Crypto mining is also addressed in the bill. Residential mining is permitted as long as it complies with zoning laws, while mining businesses in industrial areas cannot be unfairly targeted by regulatory changes. The legislation also requires Ohio’s state retirement funds to assess the risks and benefits of investing in a crypto exchange-traded fund (ETF) and report back within a year.

Ohio has been aggressively pushing pro-crypto policies. In recent months, lawmakers introduced bills to allow tax payments in cryptocurrency, establish a Bitcoin reserve, and create a long-term Bitcoin investment fund for the state. With HB 116, Ohio continues to position itself as a leader in crypto-friendly legislation.