Lawmakers in Ohio have introduced House Bill 116, which aims to prevent the state legislature from imposing additional taxes on digital assets used as a payment method. The bill, introduced on Feb. 24, 2025, by Representative Steve Demetriou and co-sponsored by several legislators, seeks to amend existing laws to ensure cryptocurrencies, stablecoins, and non-fungible tokens (NFTs) are not subject to extra fees beyond those applied to traditional fiat transactions.
Key Provisions of House Bill 116
The proposed legislation includes several important measures:
- Prohibits new state taxes on cryptocurrency transactions beyond standard sales or legal tender taxes.
- Grants individuals the right to self-custody their digital assets through hardware or self-hosted wallets.
- Ensures that state agencies cannot ban businesses or individuals from accepting cryptocurrency as payment.
- Exempts crypto mining, staking, and exchanging digital assets from money transmission licensing requirements under Ohio law.
- Requires Ohio state retirement funds to assess the risks and benefits of investing in cryptocurrency exchange-traded funds (ETFs) and report their findings within a year.
Impact on Crypto Regulations in Ohio
Under the bill, residential crypto mining is permitted if it follows local zoning regulations. Mining businesses are explicitly allowed in industrial areas and cannot be restricted by zoning law changes. The bill also clarifies that staking and exchanging cryptocurrencies will not require additional licensing, simplifying regulatory compliance for Ohio residents involved in digital asset transactions.
Ohio’s Expanding Crypto Legislation
Ohio has been actively working on cryptocurrency-related regulations. In September 2024, a bill was introduced to allow state tax payments in cryptocurrency. Later, in December 2024, House Bill 703 proposed establishing a strategic Bitcoin reserve for the state. Additionally, in February 2025, a new proposal aimed to create an Ohio Bitcoin Reserve Fund with a five-year holding period.
Conclusion
House Bill 116 represents Ohio’s latest move toward crypto-friendly regulation, ensuring digital assets are treated fairly in financial transactions. If passed, the bill could set a precedent for other states looking to integrate cryptocurrencies into their financial systems while maintaining regulatory clarity. The crypto community will be closely monitoring its progress in the coming months.
Michelle White is a lively crypto and blockchain news writer. She makes digital currencies fun and easy to understand with her cheerful personality and storytelling skills. When she’s not covering the latest in blockchain, Michelle enjoys exploring new tech projects and reading in her cozy home office. For a fresh take on crypto news, Michelle’s your go-to gal!
