Ohio House Proposes New Bill to Regulate Cryptocurrency Usage
In a significant move towards cryptocurrency regulation, members of the Ohio House of Representatives have introduced a new legislative proposal. This bill aims to safeguard against additional taxes on cryptocurrency transactions and addresses issues related to mining, staking, and the regulation of digital assets, particularly concerning state retirement systems.
Unveiling the ‘Ohio Blockchain Basis Act’
On a recent Monday, Ohio lawmakers put forward the “Ohio Blockchain Basis Act,” officially referred to as House Bill 116 (HB116). This bill seeks to amend current laws to prevent both state and local authorities from levying extra taxes on cryptocurrencies when used as a mode of payment. The bill, championed by Representative Steve Demetriou with co-sponsorship from Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams, aims to restrict the General Assembly from passing any legislation that would impose additional fees, taxes, or assessments on digital assets used in transactions for goods and services.
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According to LegiScan, HB116, if enacted, would maintain the application of standard fees, taxes, and assessments typically associated with legal tender transactions on cryptocurrency dealings. It also stipulates that no political subdivision or state agency can prevent Ohio residents from using digital assets for transactions or restrict their ability to manage these assets through hardware or self-hosted wallets.
The proposed legislation further emphasizes that individuals will not need a money transmitter license for activities such as crypto mining, staking, or exchanging one digital asset for another. Additionally, businesses providing mining or staking services will not be classified as offering a security or investment contract. The bill mandates that state retirement systems must assess the risks and benefits of investing in crypto exchange-traded funds (ETFs) and submit a comprehensive report to the General Assembly within one year.
Ohio’s Ongoing Efforts in Cryptocurrency Legislation
This legislative initiative is part of a broader effort by Ohio lawmakers to regulate and integrate cryptocurrency within the state. Last September, former Ohio State Senator Niraj Antani introduced Senate Bill 317, which proposed that the state accept digital assets for tax and fee payments and permit state institutions and pension funds to invest in digital assets. Despite its potential, the bill only made 25% progress before stalling in Committee, as reported by LegiScan.
In December, Ohio State Representative Derek Merrin introduced a separate bill aimed at establishing a Bitcoin reserve within the state treasury. The “Ohio Bitcoin Reserve Act,” or House Bill 703, sought to create a dedicated fund in Ohio’s treasury, providing the State Treasurer with the legal framework to purchase and hold Bitcoin.
Most recently, Ohio Senator Sandra O’Brien has put forward Senate Bill 57, which proposes allowing the state to invest in Bitcoin and establish the “Ohio Bitcoin Reserve Fund.” If passed, this legislation would mandate that the state’s Bitcoin investments be held for a minimum of five years. Senator O’Brien emphasized the importance of positioning Ohio as a leader in the crypto space, stating, “The crypto world is here, and Ohio needs to be a leader. Crypto will be a major part of President Trump’s term. When his working group issues recommendations, Ohio will be ready.”
Bitcoin’s current trading trends and economic implications continue to be a focal point for Ohio lawmakers as they strive to integrate digital currencies into the state’s financial framework. By addressing these legislative proposals, Ohio aims to position itself as a forward-thinking state in the rapidly evolving world of cryptocurrency.
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