New GOP Bill Aims to End Debanking of Crypto Companies and Risky Industries
The new GOP bill follows congressional hearings on "Operation Chokepoint 2.0" and reflects bipartisan consensus to end debanking practices.
Key Takeaways:
Tax Exemptions on Crypto Transactions:
The bill aims to eliminate state taxes and fees on cryptocurrency transactions, ensuring digital assets receive the same tax treatment as traditional fiat currency.
Protection of Digital Asset Rights:
It safeguards residents’ rights to use, self-custody, and stake digital assets while allowing cryptocurrency mining in residential areas (with zoning compliance) and industrial zones without discriminatory restrictions.
Encouragement of Crypto Adoption:
The bill seeks to promote cryptocurrency use and establish Ohio as a leader in blockchain innovation by removing financial barriers and supporting digital asset investments.
In a significant move to foster cryptocurrency adoption, Ohio State lawmakers introduced a bill that prevents the state legislature from imposing taxes on cryptocurrencies when used as a payment method.
Overview
On February 24 2025, Representative Steve Demetriou, co-sponsored by Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain and Josh Williams, introduced Ohio House Bill 116, which seeks to revise current laws to prohibit municipalities from charging additional taxes or fees on crypto transactions beyond what is levied on traditional fiat currency transactions.
It reads, “The general assembly shall not enact a bill that proposes to impose a fee, tax, assessment, or other charge on digital assets used as a method of payment for goods and services.” This legislation protects residents’ rights to engage with digital assets, including buying, selling, mining, self-custody, and operating personal blockchain nodes. Demetriou emphasised that this bill would position Ohio as a leader in the blockchain and digital assets industries.
Tax Exemptions for Digital Asset Transactions
A notable aspect of the proposed legislation is its approach to taxation. The bill stipulates that the Ohio General Assembly shall not impose fees, taxes, assessments, or other charges on digital assets used to pay goods and services, effectively granting cryptocurrencies the same tax treatment as legal tender. The Ohio Blockchain Basic Act also specifies that no state agency or local government entity can prevent individuals from accepting crypto as payment for goods and services.
This initiative aims to encourage the use of digital currencies in everyday transactions by removing additional tax burdens. The bill also allows residents to maintain the right to store their digital assets securely using hardware or self-hosted wallets and participate in crypto staking. The bill permits individuals to conduct crypto mining in residential areas as long as they adhere to local zoning laws. Additionally, mining companies are explicitly allowed to operate in industrial zones and cannot be subjected to discriminatory local zoning changes.
Inclusion of Digital Assets in State Investments
Beyond individual usage, the bill also proposes that Ohio’s state retirement systems evaluate digital asset investments. This includes considering Bitcoin spot ETFs as potential investment options for pension funds serving public employees, such as police officers, firefighters, teachers, and highway patrol personnel. By exploring these investment avenues, Ohio seeks to integrate digital assets into its financial infrastructure, potentially enhancing the diversification and performance of state-managed funds.
This legislative effort reflects a broader trend, with Ohio becoming the 16th state in 2024 to introduce measures supporting cryptocurrency rights and usage. As federal lawmakers deliberate on regulations, Ohio’s proactive stance may influence other states to consider similar policies, potentially shaping the future landscape of digital asset integration in public and financial sectors.