Rhode Island lawmakers are proposing a bill that would exempt residents and businesses from paying state capital gains tax on up to 10 Bitcoin transactions per month, each valued under $1,000. The legislation, introduced as Bill No. 0451, defines ‘Bitcoin sales’ as any transaction exchanging Bitcoin for fiat currency or other digital assets. Importantly, this exemption applies solely to state taxes and does not affect federal tax obligations. Those engaging in these tax-exempt transactions must meticulously record daily totals of their Bitcoin trades, preparedness for audits by the Rhode Island State Tax Department. 1 Chris Perrotta, Chairman of the Rhode Island Blockchain Council, views the bill’s passage as a crucial step to streamline digital asset payments and stimulate economic activity in the state. He anticipates this move will foster the growth of Rhode Island’s blockchain economy and encourage small businesses to accept Bitcoin for goods and services. Notably, no other US states have proposed similar legislation yet.