Ohio lawmakers have introduced a bill that would ban taxes on digital assets when used as a means of payment. The bill, known as the "Ohio Blockchain Bill," was introduced on February 24 by Rep. Steve Demetriou and co-sponsored by several colleagues.

According to the bill, "A municipality may not impose additional fees, taxes, or charges on digital assets beyond those already imposed on fiat currency payments." Importantly, the bill defines "digital assets" as cryptocurrencies, stablecoins, and non-fungible tokens (NFTs).

It also clarifies that no state agency or political subdivision may prohibit citizens from accepting crypto assets as payment for goods and services. The bill also allows state residents to retain the right to self-custody their digital assets using hardware or offline wallets and participate in cryptocurrency staking.

Under the proposed legislative change, Ohio pension funds would also be required to assess the potential risks and benefits of investing in a cryptocurrency exchange-traded fund and report to the General Assembly within a year.

Ohio lawmakers have been actively working on cryptocurrency-related initiatives in recent months. In September, Senator Niraj Antani proposed a bill that would require the state to accept cryptocurrency as a means of payment for taxes and fees.