Ohio HB 116 covers crypto tax and mining as reserve bills make their way in the legislature

A proposed Ohio Blockchain Basic was introduced in that state’s House of Representatives. House Bill 116 is a grab bag of provisions that would affect taxation of digital assets, protect crypto mining and other things. It was introduced by state representative Steve Demetriou with five other Republicans as cosponsors on Feb 24.

The bill would prohibit local governments from taxing or imposing fees on transactions with virtual assets. The bill carefully specifies that transactions with legal tender are not subject to the prohibition. It would also exempt certain digital asset activities from money transmitter licensing.

The bill gives retirement funds homework

Other provisions of the bill include a guarantee of the right to self-custody of digital assets. It also protects the right of individuals to mine crypto at home and of commercial enterprises to mine in industrial zones. Local zoning ordinances take precedence over individuals’ rights.

Finally, state retirement funds would be required to study the risks and benefits of cryptocurrency exchange-traded funds and report to the General Assembly in one year.

There are several crypto-related bills before the Ohio General Assembly. House Bill 703, the Ohio Bitcoin Reserve Act, was introduced by Republican Derek Merrin on Dec. 17. It has to be reintroduced in the new legislative session before action can be taken on it.

Cryptocurrency reserve bills are under consideration

Senate Bill 57, introduced by Republican Sandra O’Brien on Jan. 29 and would also create an Ohio Bitcoin Reserve, which would be managed by the state treasurer. That bill has been referred to the Committee on Financial Institutions, Insurance and Technology.

Demetriou, who gave himself laser eyes on his X homepage, introduced the Strategic Cryptocurrency Reserve Bill on Jan. 23 as House Bill 18. It has been referred to the House Committee on Technology and Innovation. At a meeting of that committee on Feb. 25, Demetriou said, 

“Close to a million and a half Ohioans have already gained a lot from their investments [in digital assets]. I think all of us agree we should be following the lead of our constituents. … We should continue to invest their money in assets that have clearly a ton of value.”

The bill would allow investment of up to 10% of the state General Revenue, Budget Stabilization and Deferred Private Trust funds.

Demetriou’s office did not immediately respond to an enquiry from Cryptopolitan about his bills. 

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