title: Missouri Set to Become First U.S. State to Eliminate Capital Gains Tax on Bitcoin

In a historic legislative move, Missouri has approved House Bill 594 (HB 594), a landmark piece of legislation that paves the way for the elimination of state-level capital gains taxes on Bitcoin and potentially other digital assets.

The Old Republic: Missouri lawmakers have approved a bill that may eliminate state capital gains taxes on Bitcoin and other digital assets, making it the first U.S. state to do so if the governor signs HB 594.

The bill, which passed the House on May 10 and the Senate on May 11, amends Section 143.011 to allow residents to exclude capital gains from their adjusted gross income. It now awaits the governor’s signature to become law.

If enacted, HB 594 would grant capital gains tax relief to residents and institutions who hold and trade digital assets like Bitcoin, Ethereum, and other cryptocurrencies.

The bill’s primary sponsor is Rep. Steve May (R-78), and it is co-sponsored by several other House and Senate members.

HB 594’s journey began in January 2023, with the House Committee on Budget scoring the bill and setting it for hearing. After multiple presentations and discussions, the bill was approved by the House and passed to the Senate.

The Senate had previously introduced a similar bill, SB 166, also aiming to amend the state’s capital gains tax code. However, SB 166 stalled in the Senate and was not voted on before the 2023 legislative session.

HB 594’s approval comes amid increasing interest in blockchain and digital asset policies at the state level. Earlier this year, Arizona’s governor vetoed two crypto bills due to volatility concerns, while the SEC chairman outlined a new approach for U.S. crypto regulation.

Several states are also considering legislation to ban U.S. politicians from personally endorsing crypto tokens in order to prevent fundraising abuse.