Rhode Island Reintroduces Bill to Study Blockchain and Cryptocurrency

Rhode Island lawmakers have reintroduced a bill

Earlier this month, Rhode Island lawmakers reintroduced a bill to temporarily exempt small-scale Bitcoin transactions from state income and capital gains taxes, continuing a push started last year to reduce tax friction for everyday Bitcoin use. 

Senate Bill S2021, introduced by Senator Peter A. Appollonio and referred to the Senate Finance Committee, would exempt Bitcoin sales or exchanges up to $5,000 per month, with a $20,000 annual cap, for both residents and Rhode Island-based businesses. 

The bill adds a new section to the state’s personal income tax code, defining Bitcoin as a “digital, decentralized currency based on blockchain technology.” 

Taxpayers could self-certify eligibility on returns without reporting individual transactions, maintaining records only for potential audits.

The Department of Business Regulation would issue guidance on valuation and recordkeeping. 

If passed, the exemption would take effect January 1, 2027, and sunset January 1, 2028, serving as a pilot program to treat Bitcoin more like everyday money rather than a speculative asset.

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