Bitcoin Magazine

Rhode Island Reintroduces Bill to Study Blockchain and Cryptocurrency

Rhode Island lawmakers have reintroduced a bill to establish a special legislative commission to study blockchain technology and crypto, showing some continuous pro-bitcoin momentum for the state to explore its role in the digital asset economy.

Senate Bill S 2198, introduced by Senators Lou DiPalma, Gu, Burke, Urso, Paolino, and Zurier, would create a five-member commission tasked with reviewing blockchain and cryptocurrency activity across the country, examining current Rhode Island laws, studying non-fungible tokens (NFTs), and consulting industry experts.

The commission would also provide legislative recommendations to foster a pro-business environment while ensuring appropriate consumer protections.

The commission’s composition includes the Rhode Island Secretary of Commerce as chair, the Director of the Department of Business Regulation, and three public members appointed to represent academia, financial institutions, and federal securities expertise. 

The panel is expected to meet at least four times per year, with a final report due by January 5, 2028, and will operate publicly, posting its findings online.

The bill is not entirely new. It passed the Rhode Island Senate last year as S 0373 but stalled in the House (H 5810). 

The Rhode Island Bitcoin Policy Institute posted the reintroduction of the law on social media, thanking Senator DiPalma for sponsoring the bill and noting that discussions with Deputy House Speaker Ray Hull have made them optimistic about passage this session.

With cryptocurrency adoption growing nationwide and states competing to attract blockchain businesses, Rhode Island’s effort reflects a broader push to balance innovation with oversight and establish itself as a hub for emerging financial technology.

JUST IN: Rhode Island introduces bill to create a legislative commission to study Bitcoin, crypto, and blockchain pic.twitter.com/hCA3OQFaPX

— Bitcoin Magazine (@BitcoinMagazine) January 26, 2026

Rhode Island’s bitcoin push

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.

This post Rhode Island Reintroduces Bill to Study Blockchain and Cryptocurrency first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Rhode Island Reintroduces Bitcoin Tax Exemption Bill for Second Straight Year

Rhode Island lawmakers have introduced a bill that would temporarily exempt small-scale Bitcoin transactions from state income taxes, marking the second consecutive year legislators have proposed the measure as somewhat of a pilot program to reduce tax friction on everyday Bitcoin use.

Senate Bill S2021, introduced on January 9 by Senator Peter A. Appollonio and referred to the Senate Finance Committee, would create a limited income tax exemption for Bitcoin transactions conducted by Rhode Island residents and Rhode Island–based businesses. 

Under the proposal, Bitcoin sales or exchanges would be exempt from state income and capital gains taxes up to $5,000 per month, with a $20,000 annual cap.

The bill amends Rhode Island’s personal income tax code by adding a new section specifically addressing Bitcoin.

It defines Bitcoin as a “digital, decentralized currency based on blockchain technology,” and applies the exemption to both individuals residing in the state and businesses that are based and operate primarily within Rhode Island.

If passed, qualifying Bitcoin transactions below the exemption thresholds would not be included in taxable income for state purposes. 

Taxpayers would be allowed to self-certify eligibility on their annual state tax returns and would not be required to report individual transactions, provided they maintain reasonable records demonstrating compliance with the annual limit. Those records would only need to be produced if requested by the state for audit purposes.

The legislation also directs Rhode Island’s Department of Business Regulation to issue plain-language guidance outlining acceptable recordkeeping practices and valuation methods, using publicly available Bitcoin price indices to determine market value at the time of each transaction.

It’s important to note that the proposal is explicitly temporary. The exemption would take effect on January 1, 2027, and sunset on January 1, 2028, unless extended or amended by the General Assembly after reviewing its fiscal and economic impact, per the bill.

Lawmakers characterize the measure as a practical program aimed at treating digital money more like traditional money for small, everyday transactions rather than speculative investments.

Other states like Rhode Island taking on pro-bitcoin initiatives

Only a handful of U.S. states have taken steps similar to Rhode Island’s proposed Bitcoin tax exemption, and most stop well short of treating Bitcoin like everyday money. 

Ohio is a close comparison, which is trying to adopt a narrow “de minimis” exemption that removes state capital gains taxes on small crypto purchases under a low dollar threshold. 

New Hampshire is another state actively championing Bitcoin. In May 2025, New Hampshire became the first U.S. state to allow its treasury to invest in Bitcoin and other large-cap digital assets, authorizing up to 5% of certain public funds to be allocated into crypto under House Bill 302. Bitcoin currently qualifies under the market-cap rule.

This post Rhode Island Reintroduces Bitcoin Tax Exemption Bill for Second Straight Year first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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