Lawmakers in the Ohio House of Representatives proposed a bill to prevent extra taxes on crypto payments and address mining, staking, and regulation of digital assets and investments by the state retirement systems.
Lawmakers Introduce ‘Ohio Blockchain Basis Act’
On Monday, Ohio lawmakers introduced the “Ohio Blockchain Basis Act,” or House Bill 116 (HB116), to amend the existing legislation and prevent state and local governments from imposing additional taxes on crypto assets used as a payment method.
Sponsored by Representative Steve Demetriou and co-sponsored by Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams, Bill 116 aims to prevent the General Assembly from enacting “a bill that proposes to impose a fee, tax, assessment, or other change on digital assets used as a method of payment for goods and services.”
Ohio lawmakers introduce House Bill 116. Source: LegiScan
If passed, HB116 would still allow fees, taxes, assessments, or other charges that usually apply to legal tender transactions on crypto transactions.
It also mandates that no political subdivision or state agency could prohibit Ohio residents from accepting digital assets as payment for goods and services or restrict them from custodying their crypto assets using hardware or self-hosted wallets.
Under the proposed bill, individuals are not required to have a money transmitter license to engage in crypto mining, staking, or exchanging a crypto asset for another digital asset, while businesses offering mining or staking services won’t be “considered to be offering a security or investment contract.”
Moreover, the state retirement funds will be required to evaluate the potential risks and benefits of investing in crypto exchange-traded funds (ETFs) and write a report for the General Assembly within a year.
Ohio Continues Crypto Legislation Efforts
This move follows other similar proposals from Ohio lawmakers, including former Ohio state senator Niraj Antani’s proposed Senate Bill 317 last September.
If passed, the bill would have required the state to accept digital assets for state taxes and fee payments and allowed state institutions and pension funds to invest in digital assets. However, according to LegiScan, the bill only progressed 25% before dying in Committee.
Moreover, Ohio State Representative Derek Merrin introduced a bill in December to create a BTC reserve within the state treasury.
The “Ohio Bitcoin Reserve Act,” or House Bill 703, aimed to establish a dedicated fund within Ohio’s treasury and provide the State Treasurer with a legal framework that allows them to purchase and hold BTC.
Most recently, Ohio Senator Sandra O’Brien introduced Senate Bill 57, a second bill to allow the state to invest in Bitcoin and create the “Ohio Bitcoin Reserve Fund.” If passed, the proposed legislation will require the state’s Bitcoin investments to be held for five years.
The State Senator asserted, “The crypto world is here, and Ohio needs to be a leader. Crypto will be a major part of President Trump’s term. When his working group issues recommendations, Ohio will be ready.”
Bitcoin trades at $88,960 in the one-week chart. Source: BTCUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
