In a landmark move that could reshape how digital assets are treated at the state level, the Ohio House of Representatives has passed the highly anticipated “Bitcoin Rights” bill, formally known as House Bill 116. The legislation introduces a host of crypto-friendly reforms, most notably a $200 capital gains tax exemption for everyday crypto transactions. The bill now advances to the Ohio Senate and, if approved, will head to Governor Mike DeWine’s desk for final authorization.

This sweeping legislation, championed by State Representative Steve Demetriou, aims to create a clear, innovation-friendly legal environment for digital assets such as Bitcoin. Among its most talked-about provisions is the introduction of a “de minimis” tax exemption that would eliminate the need for Ohio residents to report or pay taxes on crypto transactions up to $200. This measure is designed to facilitate small, everyday uses of digital currencies — like buying a coffee or tipping online — without burdening users with complicated tax reporting.

Proponents of the bill argue that this exemption could significantly boost crypto adoption at the grassroots level, as it simplifies the use of digital assets in daily commerce. By reducing tax-related friction, Ohio is setting the stage for crypto to be used not just as an investment but as a practical, everyday financial tool.

But House Bill 116 goes far beyond tax reform. It establishes a wide-ranging framework that protects the rights of both individuals and businesses operating in the cryptocurrency space. Notably, the bill safeguards the right to self-custody, meaning individuals can legally hold and manage their own crypto assets without interference. It also secures the rights to operate blockchain nodes and crypto mining farms, two key components of decentralized networks.

In addition, the bill explicitly exempts crypto-related activities such as mining, staking, and node operation from being categorized under existing money transmitter, securities, or investment regulations. This move is aimed at eliminating gray areas and legal confusion that have historically hindered innovation and investment in blockchain technologies.

If passed into law, the Ohio Blockchain Basics Act will prohibit state and local governments from restricting the use of digital assets for payments. It also bans interference with self-hosted wallets, ensuring that users can continue to interact with blockchain networks directly, without needing to rely on third-party custodians.

A particularly important clause in the legislation is its protection of mining operations. The bill states that local governments cannot rezone or restrict mining activities without formal notice and due process, offering an unprecedented level of legal stability to businesses engaged in cryptocurrency infrastructure development.

Representative Demetriou emphasized the broader significance of the legislation, stating, “Once we pass this bill, we’ll become one of the first states in the country to create a common-sense regulatory framework for these cutting-edge technologies and industries.”

This sentiment is echoed by crypto advocates across the U.S., who see Ohio’s proactive stance as a model for other states. By combining individual rights protections, business-friendly rules, and clear tax guidance, the state is positioning itself as a national leader in blockchain policy.

The bill passed the House Technology and Innovation Committee unanimously with a 13-0 vote, reflecting bipartisan support and growing political will to embrace crypto innovation. As it heads to the Senate, supporters are optimistic about its passage, citing strong alignment with Ohio’s economic development goals and the broader push for tech-sector growth.

If signed into law, House Bill 116 could pave the way for Ohio to attract blockchain startups, crypto miners, and digital asset investors, all while empowering residents to use cryptocurrencies more freely and conveniently in their daily lives.

At a time when federal regulation of digital assets remains uncertain, Ohio’s move could be a pivotal moment in state-led crypto legislation, offering a blueprint for others to follow.