State of Bitcoin and Blockchain Bills - October 2025

By Dan Hersey, Founder, Rhode Island Bitcoin Policy Institute

This past legislative session marked a turning point for Bitcoin and blockchain policy in Rhode Island, because we earned something quite rare in public policy: a seat at the table.

While our flagship legislation, S0451, the “Bitcoin Microtransaction Relief Act,” did not pass this year, it succeeded in opening doors that had previously been closed. For the first time, as Lou Dipalma, Chairman of the Senate Finance Committee, and other key policymakers engaged seriously with the question of how Bitcoin could fit within Rhode Island’s economic and technological future. They didn’t dismiss it. They asked questions, and now…they’re working to help support it.

That’s incredible progress.

Listening, Learning, and Adapting

When we introduced S0451 as a simple, targeted exemption for small Bitcoin payments under $1,000, our focus was around digital clarity. Rhode Islanders shouldn’t have to track every coffee or grocery purchase made in Bitcoin like a day trade.

But we heard the feedback: the structure was too granular, too administratively messy. So we are working with Senator Peter Appollonio and others to amend the proposal into something more practical, including a monthly exemption cap that achieves the same goal without the bureaucratic friction. That’s the legislative process at its best: education leading to refinement.

A Broader Movement Takes Shape

Beyond our own bill, 2025 saw several important blockchain and cryptocurrency measures introduced in the General Assembly — proof that the momentum is growing:

• S0373 / H5810: Creates a Special Legislative Commission to Study Blockchain and Cryptocurrency, sponsored by Senators DiPalma, Samuel Bell, John Burke, Victoria Gu, and Melissa Murray. The commission will hold hearings, gather expert testimony, and issue reports throughout the next few years. This is the bill we’re most excited about — because it’s the institutional forum Rhode Island needs to construct broader digital asset law.

• H5564: Known as the Rhode Island Economic Growth Blockchain Act, this bill would establish a regulatory sandbox and public-private partnerships to let blockchain companies test innovative products under DBR supervision.

  It also contemplates Special Purpose Depository Institutions (SPDIs) — banks designed to serve blockchain businesses with 100 % liquid reserves — modeled on Wyoming HB74 (2019) and Nebraska LB648 (2021).

• H6007: Authorizes the State Treasurer to invest up to 10 % of uncommitted state funds in digital assets such as Bitcoin, held through qualified custodians.

  The goal: hedge inflation risk and strengthen Rhode Island’s balance sheet through diversification — an idea already adopted in New Hampshire (HB302 2025) and under debate in Texas (SB21 2025).

• H5868/S0375: Establishes clear legal protection against compelled disclosure of private cryptographic keys in civil or criminal proceedings, except where a public key is unavailable or inadequate.

  Modeled on Wyoming HB0086 (2023), this bill affirms that digital keys — like house keys — are private property. It’s a forward-looking privacy safeguard that would place Rhode Island among national leaders in digital-rights protection. (Introduced Feb 28 2025 — LegiScan H5868 / S0375).

Each of these measures move us closer to a mature policy environment. Together, they reflect a bipartisan recognition that digital monetary networks are here to stay.

What Comes Next

The formation of the Blockchain and Cryptocurrency Study Commission (S0373/H5810) will be the defining opportunity of the next session. Once that resolution passes, Rhode Island will officially begin studying the technology through data, testimony, and education.

When that happens, the Rhode Island Bitcoin Policy Institute will be ready to lead from the front lines:

• Providing expert briefings on Bitcoin’s open, permissionless design.

• Helping lawmakers understand the basics of blockchain and how it can help Rhode Island, from Governments to families.

• Offering model language for consumer protection, small-transaction relief, and digital-asset custody frameworks.

Our north star is unchanged: to ensure Rhode Island approaches the digital economy with clarity, prudence, and principle.

Dan Hersey

Founder, Rhode Island Bitcoin Policy Institute