Missouri is on its way to make history by becoming the first U.S. state to remove capital gains tax on Bitcoin. House Bill 594 has been introduced and aims to propose exempting the capital gains from the adjusted gross income. The bill has already passed the state legislation and is now awaiting the signature of Governor Mike Parson.

If made legal, the new law would start a groundbreaking shift from how digital assets are treated under the state tax regulation. As of this moment, Missouri is leading the race to become the most crypto-friendly state in the United States of America.

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House Bill to Eliminate Capital Gains Tax on Bitcoin

Thanks to this bill, the tax code of Missouri will allow the residents of the state to exclude capital gains from their state income tax obligations. This exemption is currently limited to Bitcoin investments. The legislation has drawn interest from the entire crypto industry due to its broad reach. For those who own digital assets, the law is quite important.

Capital gains taxes have long been seen by advocates of cryptocurrency as a roadblock to widespread adoption. These taxes often discourage frequent trading and the use of cryptocurrencies in everyday transactions. Missouri could foster a more attractive environment for both retail and institutional investors, by removing this financial burden.

The law is introduced at a time when states in the US are looking more closely at regulations relating to digital assets and blockchain. An increasing desire to establish competitive financial ecosystems is reflected in state-level initiatives like this bill, as more Americans use cryptocurrency as a payment method or as an investment. The cryptocurrency community is keeping a close eye on the new bill, but Governor Parson has not yet stated whether he would sign it.