Ohio legislature passes Blockchain Basics Act to support digital asset growth

The Ohio House Technology and Innovation Committee convened on March 25, 2025, to discuss significant legislative measures aimed at regulating digital assets and blockchain technology in the state. Central to the meeting was the introduction of House Bill 116, which seeks to prohibit targeted taxes and fees on digital assets, ensuring they are treated similarly to traditional currency.

The bill aims to promote fairness and encourage the adoption of digital assets by eliminating discriminatory taxation. This uniform approach is designed to create a supportive environment for blockchain technology, preventing local governments from imposing special taxes or fees on digital transactions. Proponents argue that this legislation will foster innovation, attract investment, and drive economic growth in Ohio.

In addition to tax prohibitions, the bill includes provisions for defining key terms related to digital assets, exemptions from money transmission laws, and regulations for digital asset mining. Notably, it allows for digital asset mining in residential areas, provided local laws and permits are followed. This comprehensive framework is intended to provide legal certainty and consistency across Ohio, positioning the state as a leader in the blockchain sector.

During the meeting, committee members raised concerns about local control and the implications of restricting local governments from taxing digital assets. Some representatives questioned how this legislation would affect local funding, particularly for essential services such as libraries and public safety. The discussion highlighted the balance between fostering a conducive environment for technological advancement and ensuring local governments retain the ability to generate revenue.

Overall, the Ohio Blockchain Basics Act represents a forward-looking initiative aimed at embracing the future of technology while addressing the complexities of local governance and funding. The committee's discussions underscored the importance of establishing a clear regulatory framework that supports both innovation and community needs.