- Ohio’s HB 116 offers tax exemption on Bitcoin payments under $200 and mining protections.
- Ohio pursues Strategic Bitcoin Reserve bills, following Arizona and New Hampshire models.
- Multiple U.S. states and countries move to establish Bitcoin reserves and legal frameworks.
The Ohio House of Representatives has passed a landmark “Bitcoin Rights” bill with significant bipartisan support, a move aimed at establishing the state as a premier destination for the cryptocurrency industry. The legislation, known as House Bill 116, creates a framework to encourage the everyday use of Bitcoin through a key tax exemption while also codifying legal protections for the network’s core participants.
The bill’s passage signals a deliberate strategy by Ohio lawmakers to compete for investment and talent in the digital asset economy, placing the state at the forefront of a national trend in crypto-focused legislation.
A ‘De Minimis’ Exemption to Drive Adoption
A central provision of the bill is a “de minimis” tax exemption, which eliminates state-level capital gains taxes on Bitcoin transactions valued under $200. This measure directly addresses a key hurdle that has long complicated the use of digital assets for small, routine purchases.
By removing the tax reporting burden for these transactions, supporters contend the bill makes Bitcoin a more practical medium of exchange for Ohio residents, which could spur wider adoption across the state.
Codifying Protections for Miners and Self-Custody
Beyond tax relief, HB 116 sets major legal rules regarding blockchain technology, digital asset mining, and individual rights to operate nodes and maintain self-custody of Bitcoin.
Related: Pakistan Unveils Strategic Bitcoin Reserve and National Wallet at Bitcoin 2025 Event
The legislation protects businesses and individuals engaged in mining and decentralized node operations, strengthening the decentralized principles of the Bitcoin network and ensuring legal safeguards for these activities.
The Next Frontier: A State-Level Bitcoin Reserve
Ohio’s legislative ambitions extend further, with two related bills—HB 18 and SB 57—currently under consideration that would authorize the creation of a state-level Strategic Bitcoin Reserve. These proposals would permit Ohio to hold Bitcoin as a reserve asset, a policy already adopted by states like Arizona and New Hampshire.
This initiative is part of a broader national movement, with states such as Texas, Oklahoma, and North Carolina advancing similar bills. It reflects a growing recognition among state policymakers of Bitcoin’s potential as a strategic asset, a race in which Ohio now aims to be a leading competitor.
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