South Carolina, Ohio, Mississippi introduce Blockchain Basics Act to protect ‘crypto’ ownership, mining

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Three more U.S. states have introduced a bill that seeks to protect the rights of Americans to own, mine, and trade digital assets.

South Carolina, Ohio, and Mississippi became the latest states to introduce the Blockchain Basics Act, joining Nebraska, Missouri, Tennessee, and others where legislators are debating the draft bill.

The bill has similar stipulations across the three states, with a few minor tweaks. It includes barring state agencies from prohibiting digital assets in payments or denying residents the right to self-custody. Selling digital assets for fiat shall “not be considered the purchase of currency for tax purposes,” the bill adds.

Digital assets used as payment shall also not be subject to capital gains taxes if they remain below the $200 threshold.

“Home digital asset mining” is legalized by the proposed bill as long as the operators observe local noise ordinances. Commercial mining will be legal, but only in industrial zones.

Other stipulations include protecting the rights of residents to operate blockchain nodes
without needing money transmitter licenses and protecting staking operators from being categorized as providers of securities or investment contracts.

MASSIVE BRREAKING: Three more states have introduced a bill to defend your fundamental #Bitcoin rights.

Ohio, South Carolina, and Mississippi are rallying to defend your liberties including your:

✅ Right to buy, sell, and trade #Bitcoin without undue restriction.
✅ Right to…

— Dennis Porter (@Dennis_Porter_) February 17, 2024

Dennis Porter, whose Satoshi Action Fund has played a critical role in preparing and pushing the Act, said the bill will protect digital assets from legislators like Sen. Elizabeth Warren (D-MA), who “want to control [digital assets] and ban you from using them on your own terms.”

In South Carolina, the Act was introduced to the Senate by Sen. Danny Verdin, while in Mississippi, Rep. Jody Steverson took charge.

In Ohio, the bill was introduced by Rep. Steve Demetriou, a first-term legislator who believes it could make Ohio a digital asset hub. The legislator, who also introduced an anti-CBDC bill, says the Act will “signal to innovators that Ohio is open for business.”

“The digital asset industry is not going away anytime soon. America and Ohio must lead the way to ensure we are open to innovation and job creation while protecting the American values we hold so dear,” he recently stated.

While the Blockchain Basics Act has received support in some states, it has faced opposition in places like Georgia, where some legislators raised concerns over block reward mining.

“I’ve always come to the conclusion that if it wasn’t good enough for China, it’s not good enough for Cook County,” stated Rep. Penny Houston, a Nashville Republican.

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