In a significant move towards adopting cryptocurrency in the United States, Ohio is on the brink of accepting crypto for tax payments. On Monday, Senator Niraj Antani introduced a new bill to legalize the use of digital assets for state and local taxes and fees.
Ohio’s New Crypto Tax Initiative
In a recent post on X (formerly Twitter), Antani emphasized the importance of cryptocurrency, stating, “It’s not just the future — it’s the present.” He also expressed pride in being one of the most pro-cryptocurrency members of the Ohio Senate.
This initiative is not without precedent. Ohio made headlines in November 2018 when it became the first state to allow cryptocurrencies for tax payments under then-State Treasurer Josh Mandel.
Nonetheless, this progress was hampered in November 2019 when the Ohio Attorney General ruled that the State Board of Deposits must approve cryptocurrency use for tax purposes. Unfortunately, the board has not acted on this, prompting Antani to take legislative action.
Antani praised Mandel’s foresight as a leader in cryptocurrency adoption, noting that Ohians owe him gratitude for being “an early innovator” in this space. He further criticized the State Board of Deposits for its inaction, asserting that the legislature would now step in to ensure that Ohio can capitalize on the benefits of cryptocurrency.
Interestingly, the proposed bill also includes provisions allowing state universities and pension funds to invest in cryptocurrencies if they choose to do so.
US States And Institutions Ramp Up Interest In ETFs
Bitcoinist has previously reported on similar moves from other states in the country, with institutional investors showing increased interest in the Bitcoin exchange-traded fund (ETF) market following regulatory approval from the US Securities and Exchange Commission (SEC) in January.
For example, the Wisconsin State Investment Board allocated approximately $100 million to BlackRock’s iShares Bitcoin Trust ETF 5 months ago. In addition, discussions were made in New Hampshire, led by State Representative Keith Ammon, who aims to diversify the state’s financial reserves through Bitcoin ETFs.
This also shows the growing support for the digital asset industry from the Republican Party, with former President Donald Trump and Senator Cynthia Lummis at the forefront of this movement.
Lummis has been actively proposing legislation to strengthen the US position in the crypto space, including a bill introduced on July 31 to establish a “Strategic Bitcoin Reserve.” This initiative aims for the US Treasury to acquire one million Bitcoins over five years, comparing it to the Strategic Petroleum Reserve.
On the other hand, Trump, who is running for president again, has expressed his intention to remove SEC Chairman Gary Gensler, whose enforcement approach has been criticized by many in the crypto community.
Among other things, Trump intends to make the US the “crypto capital of the planet,” signaling a strong push for the country to become a leader in the digital asset landscape.
Overall, with the possibility of a scenario where Trump secures his seat in the Oval Office again, more institutions and states across the country can follow the lead of Ohio, Wisconsin and New Hampshire in embracing digital assets for economic growth.
At the time of writing, BTC was trading at $63,560, down 3.3% in the 24-hour time frame, after hitting a two-month high of $66,500 last Friday.
Featured image from DALL-E, chart from TradingView.com