Ohio Lawmakers Champion Cryptocurrency Rights with New Bill

Ohio Congressman Steve Demetriou has introduced the Ohio Blockchain Basics Act, protecting the right to use cryptocurrencies like Bitcoin as mediums of exchange. The bill safeguards the freedom to buy, sell, mine, and self-custody digital assets, while advocating for favorable tax treatment and mandatory evaluation of digital asset investments in state retirement systems. Ohio joins 15 other states in introducing legislation to defend Bitcoin against federal efforts to increase regulation.

Ohio Legislature Proposes Bill to Safeguard Cryptocurrency Rights

Columbus, Ohio - A groundbreaking legislative initiative has been introduced in the Ohio State Legislature, aiming to protect and promote the fundamental rights associated with the use of Bitcoin and other cryptocurrencies. The Ohio Blockchain Basics Act, sponsored by Representative Steve Demetriou, seeks to establish a comprehensive framework that safeguards the financial autonomy of Ohioans in the realm of digital assets.

Core Principles of the Blockchain Basics Act

The proposed legislation outlines a series of fundamental rights that are essential to the use of cryptocurrencies as legitimate mediums of exchange:

• Right to Buy and Sell: Individuals retain the right to freely engage in transactions involving the purchase and sale of Bitcoin and other digital assets.
• Right to Mine: The act acknowledges the right of individuals to participate in the process of verifying and adding new blocks to a blockchain, known as mining.
• Right to Self-Custody: Users have the exclusive right to maintain control over their digital assets without mandatory third-party involvement, ensuring the security and privacy of their holdings.
• Right to Run a Personal Blockchain Node: Individuals have the freedom to operate their own blockchain nodes, allowing them to participate directly in the validation and verification of transactions.

Tax Implications

The legislation advocates for equitable tax treatment of cryptocurrencies when utilized as payment mechanisms. It proposes that Bitcoin and other digital assets should be subject to the same tax policies applied to legal tender, thereby recognizing their legitimacy as mediums of exchange.

Retirement Systems Evaluation

A noteworthy aspect of the bill mandates a comprehensive evaluation of specific digital asset investments by the state's retirement systems. This clause includes the assessment of Bitcoin spot ETFs as potential investment options for Ohio's public sector pension funds, including those of police, firefighters, teachers, highway patrol officers, and public employees.

National Context and Legislative Momentum

Ohio joins a growing cohort of 16 other states that have introduced legislation in 2024 aimed at protecting Bitcoin and other cryptocurrencies. This legislative movement is a direct response to countervailing efforts by federal lawmakers seeking to impose stricter regulations on digital assets.

Various federal initiatives, such as those proposed by Senator Elizabeth Warren, have sought to expand reporting obligations on crypto wallet providers and impose stringent measures to combat the use of digital assets for illicit activities. Furthermore, the Biden administration has proposed burdensome reporting requirements for the mining industry and contemplated a 25% tax on unrealized capital gains, which would significantly impact cryptocurrency investors.

Conclusion

The Ohio Blockchain Basics Act represents a significant step towards establishing a supportive regulatory framework for the use and development of cryptocurrencies in Ohio. The legislation's focus on protecting fundamental rights, promoting equitable taxation, and encouraging investment opportunities demonstrates a forward-looking approach to embracing digital asset technologies. If passed, the act would position Ohio as a leader in the blockchain and digital assets industries, fostering innovation and economic growth while safeguarding the financial freedom of its citizens.