Ohio Makes Crypto History: House Passes Groundbreaking Bitcoin Tax Exemption Bill
Ohio just fired a shot across the bow of outdated tax policy. The state House greenlit legislation that lets Bitcoin users skip minor tax headaches—a small win with big implications.
Decentralization scores a point
No more nickel-and-diming crypto holders for micropayments or casual transactions. The bill carves out exceptions for everyday Bitcoin use, though major transactions still fall under existing tax rules.
The fine print
Lawmakers drew the line at "minor" burdens—think coffee purchases, not car sales. It's a calculated move to position Ohio as crypto-friendly while avoiding revenue nightmares (because even anarcho-capitalists need paved roads).
Wall Street won't like this
Traditional finance hates when the plebs find loopholes. But with states competing for crypto business, expect more dominoes to fall. Just don't call it a tax haven—yet.
Changing tides
Sponsored by Rep. Steve Demetriou, HB 116 was first introduced in February and advanced from the House Technology and Innovation Committee before winning full House approval on Tuesday.
Wednesday’s legislation comes just a day after the U.S. Senate passed major stablecoin reform under the GENIUS Act in Washington, D.C., as crypto regulation across the nation this year continues to firm.
It also marks the latest in state laws enacted to codify rights for crypto users and providers, following Kentucky's passage of a Bitcoin and ethereum Self-Custody Law in March.
“We're getting ready to show the country that Ohio is ready to embrace the future of our economy and blockchain technology and digital assets,” Demetriou said before the vote.
“Once we pass this bill, we'll become one of the first states in the country to create a common-sense regulatory framework for these cutting-edge technologies and industries,” Demetriou added.
🚨BREAKING: Ohio’s HB 116 passes the House with massive bipartisan support, 68–26.
Majority Whip @steve4ohsenate’s leadership delivers the strongest Bitcoin Rights bill to pass a state chamber in the U.S.
This legislation:
✅ Protects self-custody; Your keys, Your coins.
✅… pic.twitter.com/HXPrWflCbR
— Satoshi Action Fund (@SatoshiActFund) June 18, 2025
Other states considering new crypto regulations include Arizona, Florida, California, Texas, and Wyoming.
The Satoshi Action Fund, which advocates for state-level crypto policy reform, praised the passage of Wednesday’s bill through the House.
It’s a “clear signal” lawmakers are starting to come around to the idea of guarding the rights of industry participants, while “encouraging innovation in the Buckeye State,” Dennis Porter, CEO and co-founder of the Satoshi Action Fund, told Decrypt.
He also labeled the $200 capital gains exemption “a commonsense fix that helps everyday bitcoin users avoid unnecessary tax complexity.”
“I’m optimistic this momentum will carry forward in the Senate and look forward to seeing Ohio emerge as a national leader on Bitcoin and digital asset policy,” he said.
The office of Representative Steve Demetriou did not respond to Decrypt's requests for comment.
Edited by Sebastian Sinclair
