Ohio’s House of Reps passes bill allowing up to 200-dollar tax-free crypto payments

Ohio’s House of Representatives has passed a bill that could revolutionize how cryptocurrencies are used and taxed in the state. The legislation, known as House Bill 116 (the Ohio Blockchain Basics Act), includes a key provision allowing 200-dollar tax-free crypto payments—a measure designed to encourage everyday crypto transactions while shielding small users from capital gains taxes.

Lawmakers voted 70-26 in favor of the bill, which now heads to the Senate. If signed into law, Ohio could become one of the most crypto-friendly states in the U.S., setting a precedent for digital asset regulation nationwide.

200-dollar tax-free crypto payments bill boosts small transactions

The most talked-about aspect of the bill is its tax exemption for crypto transactions under $200. Starting in the first tax year after passage, Ohioans could buy goods, send payments, or trade crypto without worrying about capital gains taxes, as long as the amount stays below the threshold.

According to law, the 200-dollar tax-free crypto payments limit would adjust annually with inflation, rounded to the nearest $5. Critics argue this could reduce state tax revenue, but supporters say it removes barriers for everyday crypto use.

“This isn’t about helping speculators, it’s about making crypto practical for coffee shops, freelancers, and small businesses,” said Republican Rep. Steve Demetriou, the bill’s primary sponsor.

Crypto mining gets green light, even in residential areas

Beyond 200-dollar tax-free crypto payments, the bill protects and deregulates crypto mining. Key provisions include:

• Home mining allowed: Residents can mine crypto in residential zones if they follow noise ordinances.

• Industrial mining protected: Businesses can operate in industrial zones without discriminatory restrictions.

• No sudden rezoning: Local governments must follow due process before changing land use rules affecting miners.

“Ohio won’t treat crypto miners like second-class businesses,” Demetriou emphasized.

The bill also bans state agencies from imposing unique regulations on mining operations unless they apply equally to other industries.

No licenses needed for staking, nodes, or crypto swaps

The Ohio Blockchain Basics Act removes red tape for blockchain participants. Under the bill, no money transmitter license is required for:

• Running a blockchain node

• Crypto mining or staking

• Swapping one cryptocurrency for another

• Developing non-custodial wallets or swap software

This 200-dollar tax-free crypto payments bill could spur innovation, as developers and node operators won’t fear legal gray areas. The bill also clarifies that staking and mining services are not securities—a direct challenge to the SEC’s aggressive stance under the Biden administration.

What’s next for Ohio’s crypto future?

With the House’s approval, the bill moves to the Senate. If passed, Governor Mike DeWine will decide whether to sign it into law. Meanwhile, Ohio is already considering another bold proposal: an “Ohio Bitcoin Reserve Fund” to hold BTC as a state asset.

The 200-dollar tax-free crypto payments rule could set a national trend. Over 40 states have introduced crypto-related bills this year, but Ohio’s approach—combining tax relief, mining protections, and regulatory clarity—stands out.

“This is about economic freedom,” said Demetriou. “Whether it’s 200-dollar tax-free crypto payments or letting miners operate without fear, Ohio is sending a message: innovation is welcome here.”

With bipartisan support and a clear focus on 200-dollar tax-free crypto payments, Ohio sets its focus on becoming a hub for blockchain innovation and a model for other states to follow.