Rhode Island just rolled out a game-changing proposal: an income tax exemption specifically designed for small-scale Bitcoin transactions. This move signals growing recognition of crypto's role in everyday commerce rather than just as an investment asset. The exemption targets modest BTC payments, potentially removing friction for retailers and individual users who treat Bitcoin as functional money—not just a speculative holding. If enacted, it could serve as a blueprint for other U.S. states exploring how to encourage Bitcoin adoption as a practical payment method. The policy reflects a broader shift: governments starting to build regulatory frameworks that support crypto utility, not just restrict it.