If passed, businesses in Ohio will have the right to decide whether to accept cryptocurrency as a payment method, much like El Salvador’s recent approach to Bitcoin.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
Ohio lawmakers have introduced a new bill seeking to exempt cryptocurrency transactions from state taxes when used for payments of goods and services. If passed, the bill would make Ohio one of the most crypto-friendly states in the US, potentially boosting adoption among businesses and individuals.
Ohio has a history of experimenting with digital asset regulations. In 2018, it became the first US state to allow businesses to pay taxes in Bitcoin BTC $82 000 24h volatility: 1.2% Market cap: $1.62 T Vol. 24h: $16.53 B but the program was later discontinued. Now, lawmakers are taking another step by aiming to remove state taxes on crypto payments, which could make Ohio a more attractive hub for digital asset innovation.
The bill, known as the Ohio Blockchain Basic Act (Ohio House Bill 116) aims to ensure that digital asset transactions are treated the same as traditional fiat payments.
The proposed rule was introduced by Representative Steve Demetriou, with co-sponsorship from Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams.
Under the bill, cryptocurrencies like Bitcoin, Ethereum, and stablecoins are classified as “digital assets”, ensuring they receive the same treatment as traditional fiat currencies. However, standard taxes applicable to legal tender, such as state and sales taxes, will still apply to crypto transactions, but no additional levies will be imposed.
“The general assembly shall not enact a bill that proposes to impose a fee, tax, assessment, or other charge on digital assets used as a method of payment for goods and services,” reads the bill.
Apart from advocating for tax exemptions on digital asset payments, the Ohio House Bill 116 also mandated state retirement funds to assess the potential risks and benefits of investing in a crypto exchange-traded fund (ETF). These funds are advised to report their findings to the General Assembly within a year.
The bill further seeks to give businesses the freedom to choose whether to accept cryptocurrencies as a payment method. This clause mirrors El Salvador’s recent Bitcoin amendment, which allows corporate entities to decide whether to engage with digital assets.
That amendment received unanimous support from the country’s lawmakers within minutes of its introduction by President Nayib Bukele as part of his deal with the International Monetary Fund (IMF).
Additionally, the bill aims to empower crypto traders in Ohio by granting them the right to self-custody their assets using hardware or software wallets without interference from centralized authorities. If passed, it would also allow individuals to participate in crypto staking within the state.
While House Bill 116 pushes for greater crypto adoption, Ohio is no stranger to embracing blockchain innovation. Existing laws already permit crypto companies to engage in mining and exchange activities without requiring a “money transmission” license. Furthermore, residents are allowed to mine cryptocurrencies in residential areas as long as they comply with local zoning regulations.
However, these provisions do not extend to large-scale mining businesses like Riot Platforms or Mara Holdings. Such companies are restricted to operating in industrial zones and are not permitted to set up mining facilities in residential areas.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
