Ohio Blockchain Basics Act (HB 406) Summary

• Prohibits taxes on digital assets used as payment: State and local governments cannot impose fees, taxes, or assessments on digital assets (cryptocurrency, stablecoins, NFTs) used to purchase goods or services, or on sales and use of such digital assets.

• Allows home digital asset mining: Individuals may engage in digital asset mining in residential areas if they comply with local noise ordinances; political subdivisions cannot enact mining-specific noise regulations or discriminatory zoning against mining businesses.

• Exempts certain digital currency transactions from income tax: Capital gains from selling digital assets used as payment are deductible from state income tax up to a $200 threshold (adjusted annually for inflation).

• Requires state retirement system evaluation: The five major state pension systems must evaluate risks and benefits of investing in exchange-traded funds holding digital assets and report recommendations to the General Assembly by March 1, 2025.

• Clarifies blockchain and digital asset definitions: Establishes statutory definitions for blockchain, digital assets, digital asset mining, nodes, staking, and related cryptocurrency concepts for regulatory purposes.