PREDICT BITCOIN
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.
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.
