OH HB116

Prohibits state and local governments from restricting individuals' ability to accept digital assets as payment or use hardware/self-hosted wallets for custody

Allows digital asset mining in residential areas (subject to local noise/nuisance ordinances) and permits mining businesses in industrial zones; bars local governments from enacting regulations targeting mining businesses differently than similar industries

Exempts digital asset mining, staking, crypto-to-crypto exchanges, and operating blockchain nodes from Ohio money transmitter licensing requirements under Chapter 1315

Prohibits counties, townships, and municipalities from imposing special taxes or fees on digital assets used as payment for goods/services (taxes that would apply to equivalent cash transactions remain permitted)

Creates a state income tax deduction for capital gains from digital asset sales used as payment, up to $200 per transaction (adjusted annually for inflation), effective for taxable years ending on or after the act's effective date