Ohio State Senator Niraj Antani has introduced a bill that could make the state a crypto pioneer. The legislation aims to allow residents and businesses to pay state and local taxes using cryptocurrencies like Bitcoin. While the proposal might position Ohio at the forefront of crypto adoption, it faces a challenging path to becoming law.
The bill would require the state and all local governments to accept cryptocurrencies for tax payments. It also proposes allowing state universities and pension funds to invest in digital assets. This ambitious vision, however, might be difficult to realize. Experts often point out that even in the most influential legislative bodies, only a small fraction of bills ever become law.
This isn’t Ohio’s first attempt to embrace crypto tax payments. Back in 2018, a similar initiative called OhioCrypto.com was launched, but it ultimately failed to gain approval from the Ohio State Board of Deposits and was subsequently suspended based on recommendations from the Ohio Attorney General.
The current bill faces similar hurdles, with concerns about the volatility of cryptocurrencies being a major obstacle. Unlike the stable US dollar, the value of cryptocurrencies can fluctuate drastically, posing risks to the state treasury. This instability could create complications during tax filing and even while receiving payments, potentially leading to significant financial losses.
Regulatory obstacles also loom large. The Ohio State Board of Deposits and the Ohio Attorney General, who opposed the 2018 program, are likely to resist the current bill as well. Additionally, security concerns add another layer of complexity. The crypto space has been plagued by hacks and scams, raising questions about the safety of a system that accepts non-USD payments for tax collection.
Despite these challenges, Senator Antani sees cryptocurrencies as vital and believes his bill can reestablish Ohio’s leadership in the crypto sector. However, the proposal faces a steep uphill battle. It must pass through the Ohio General Assembly and receive the governor’s approval, facing intense scrutiny and debate about its viability and security implications along the way.
The conversation surrounding cryptocurrency and state policies will be further explored at Benzinga’s Future of Digital Assets event on November 19th.
