Ohio is asserting its position as a cryptocurrency-friendly state in the U.S., after the House passed House Bill 116. This bill brings forth several groundbreaking regulations, particularly the capital gains tax exemption for cryptocurrency transactions under $200, with this limit set to increase with annual inflation.
Tax exemptions, mining protections, and "unleashing" Blockchain
The bill does not stop at tax exemptions. It establishes robust legal mechanisms to protect digital asset mining rights, allowing individuals to mine coins in residential areas (complying with noise regulations) and businesses to mine in industrial zones. More importantly, the bill asserts that activities such as mining, staking, or cryptocurrency swaps will not be considered securities issuance, contrary to the SEC's stance under President Joe Biden.
The bill also "unleashes" blockchain activities by acknowledging that operations unrelated to fiat currency will not require money transfer licenses. This includes coin mining, staking, operating nodes, cryptocurrency swapping, and software development. State authorities are also prohibited from banning residents from using hardware wallets or self-custody wallets.
The potential of Bitcoin reserves and the regulatory landscape in the U.S.
#ohio is considering a separate bill to establish state-owned Bitcoin reserves, which could make this state the next in the U.S. to add Bitcoin to its balance sheet.
Across the U.S., more than 40 states have introduced over 160 cryptocurrency-related bills, showcasing diverse trends: Arkansas and Montana protect mining activities; Texas is friendly towards mining and considers Bitcoin reserves; Florida restricts CBDCs and evaluates Bitcoin reserves. However, some states are moving in the opposite direction, such as New York banning proof-of-work mining and Connecticut prohibiting government investments in Bitcoin.
At the federal level, the U.S. Senate has just passed the groundbreaking GENIUS stablecoin bill, but it still requires approval from the House and the President to be officially enacted.
