Ohio Moves to Protect Crypto from State Taxes with Bold New Bill

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February 25, 2025 by Kashif Saleem

Ohio’s House Bill 116 prohibits extra taxes on cryptocurrency payments beyond those for fiat transactions.
The Ohio Blockchain Basics Act secures self-custody rights, legal crypto staking, and mining protections.
Ohio lawmakers propose Bitcoin investment bills, considering state reserves as an inflation hedge.

Lawmakers in Ohio are taking a decisive step toward protecting digital asset transactions from unnecessary state taxes. A newly introduced bill, known as House Bill 116, aims to prevent the state legislature from imposing additional taxes on cryptocurrency payments beyond those already applied to fiat transactions.

The bill was introduced on February 24 by Representative Steve Demetriou. Co-sponsors Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams support it. The legislation states that the General Assembly cannot make laws that add fees, taxes, or assessments on digital assets used for goods and services.

A key component of the bill is its broad definition of digital assets, covering cryptocurrencies, stablecoins, and non-fungible tokens (NFTs). This ensures that various forms of digital payments receive the same legal protections under Ohio law.

Expanding Crypto Rights for Ohio Residents

The Ohio Blockchain Basics Act ensures residents can self-custody digital assets using hardware or self-hosted wallets, reinforcing financial autonomy. Additionally, State agencies and political subdivisions cannot prohibit crypto payments, so businesses and individuals can use digital currencies without government interference.

Residents can legally stake digital assets holdings to earn rewards by supporting blockchain networks. Crypto mining, staking, and exchanging digital assets are exempt from money transmission licenses. The legislation provides clear guidelines for crypto mining, permitting individuals to mine in residential areas while protecting commercial mining operations in industrial zones.

The bill mandates Ohio state retirement funds to assess cryptocurrency exchange-traded fund (ETF) investments. Funds must evaluate potential risks and benefits, presenting findings to the General Assembly within a year.

Ohio Eyes Bitcoin for State Reserves

Ohio legislators have been particularly active in advancing crypto-friendly bills over the past year. In September, Senator Niraj Antani introduced legislation that would require the state to accept cryptocurrency payments for taxes and fees. This bill also sought to permit state institutions and pension funds to invest in digital assets.

In December, Ohio House Republican Leader Derek Merrin took things a step further with HB 703, titled the Ohio Bitcoin Reserve Act. This proposal would give the state treasurer the authority to purchase Bitcoin as part of Ohio’s financial strategy, though it would not mandate such investments.

Merrin backed the bill, pointing to the U.S. dollar’s falling value. He emphasized the rapid devaluation and said that the Treasurer needed more power to manage assets better. Bitcoin, he said, could help shield against financial decline. Bitcoin, he stated, offered a safeguard against economic erosion. Ohio, he argued, had to keep up with technology and protect public funds more effectively.

Following this momentum, Ohio Senator Sandra O’Brien put forward another bill in February to establish an Ohio Bitcoin Reserve Fund. This legislation mandates that Bitcoin investments be held for at least five years while ensuring secure custody solutions for the state’s BTC holdings.

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