In a landmark moment for digital asset legislation, the Ohio Bitcoin Rights Bill (House Bill 116) has officially passed the Ohio House of Representatives. Backed by bipartisan support, this legislation is poised to redefine how Bitcoin and digital asset usage is treated across the state, both legally and economically.
Protecting the Right to Self-Custody and Node Operation
One of the most significant provisions of the Ohio Bitcoin Rights Bill is its formal recognition of self-custody rights. The bill explicitly protects Ohioans’ ability to own and control their private keys without third-party intervention. It also legalizes the operation of Bitcoin nodes and mining activities within residential and commercial settings, provided they comply with local noise ordinances and zoning laws.
These inclusions ensure that individuals and small-scale miners can participate in the Bitcoin network without fear of legal repercussions.
$200 Tax Exemption for Small Bitcoin Transactions
The bill introduces a tax exemption for capital gains on Bitcoin transactions under $200. This initiative is modeled after federal efforts like the Virtual Currency Tax Fairness Act, and is designed to make everyday Bitcoin use, such as buying coffee or groceries, simpler and more practical for residents.
By encouraging low-value transactions, the Ohio Bitcoin Rights Bill promotes everyday Bitcoin usage. As a result, it aims to normalize Bitcoin as a medium of exchange. This helps shift its role away from being viewed solely as a speculative asset.
Aligning with the Blockchain Basics Act
House Bill 116 aligns closely with the broader Blockchain Basics Act, a model law promoted by pro-Bitcoin organizations like the Satoshi Action Fund. The bill clearly defines terms like “digital asset mining,” “blockchain node,” and “self-custody,” giving legal clarity to technologies that often exist in regulatory gray areas.
Its passage signifies Ohio’s ambition to be a front-runner in digital asset innovation and regulation.
Bipartisan Support and Legislative Momentum
The Ohio Bitcoin Rights Bill passed with a 68–26 vote in the House. Earlier, it received unanimous approval of 13–0 in the Technology and Innovation Committee. It was sponsored by State Representative Steve Demetriou. Moreover, the bill gained support from both Democrats and Republicans. This bipartisan backing highlights the growing recognition of Bitcoin’s importance beyond party lines.
If passed by the Senate and signed into law, Ohio will become one of the most Bitcoin-friendly states in the U.S., alongside Wyoming and Texas.
What’s Next: Senate Consideration and Final Approval
With the House approval secured, the next step is a review by the Ohio Senate. Next, the bill will undergo discussions at the Senate level. So far, no timetable has been officially set. However, analysts believe it will face minimal resistance. This is because the bill presents a balanced and pragmatic approach.
Advocates remain optimistic that the legislation will pass and signal a strong shift toward state-level Bitcoin adoption across the U.S.
Conclusion: A Precedent for Other States
Ohio’s proactive stance via the Ohio Bitcoin Rights Bill may serve as a catalyst for similar measures in other jurisdictions. As the regulatory landscape around digital assets continues to evolve, this bill sets a compelling precedent for how governments can protect innovation while supporting user rights and economic growth.
