TLDR
- Florida plans to scrap capital gains tax on Bitcoin, XRP, and stocks.
- Bitcoin may rise further as Florida removes state tax on crypto gains.
- XRP included in Florida’s tax break, boosting investor interest.
- Stocks also get tax relief under Florida’s new proposal.
- Other states may follow Florida’s lead on crypto tax policy.
Florida has introduced a bill to eliminate the capital gains tax on Bitcoin, XRP, and traditional stocks. If approved, this would mark the first time a U.S. state has enacted such a measure. The proposal aims to boost crypto adoption while positioning Florida as a leader in financial innovation.
Bitcoin to Benefit from Florida Tax Bill
Florida’s tax bill could significantly influence Bitcoin’s local and national appeal. By eliminating capital gains tax at the state level, residents would no longer owe taxes to Florida when selling or trading Bitcoin. This change is expected to attract more individual and institutional investors to the state.
JUST IN: 🇺🇸 Florida introduces bill to eliminate capital gains tax on BTC. pic.twitter.com/pY60d0zCFc
— Whale Insider (@WhaleInsider) May 26, 2025
Moreover, Bitcoin has recently climbed past $112,000, gaining attention amid macroeconomic stability and increased institutional demand. While the federal capital gains tax would remain unchanged, the state-level exemption would still offer notable savings for residents. Consequently, analysts believe the policy could help push Bitcoin’s price toward $135,000 in the next quarter.
Additionally, Bitcoin’s on-chain data signals continued strength, with exchange reserves falling and active wallet addresses rising. These fundamentals suggest growing investor confidence as interest in digital assets increases.
XRP Also Included in Tax Exemption Proposal
The proposal covers XRP, which could gain momentum from the anticipated regulatory clarity. Florida’s bill could prompt new retail inflows into XRP, given the reduced tax obligations on profits made within the state. Although federal taxes would still apply, the exemption simplifies state-level tax filings for investors.
XRP has faced legal and market uncertainty, but state support may improve investor sentiment. Increased adoption by Florida-based businesses and institutions could result in broader payment use cases for XRP. At the same time, the state’s leadership in crypto regulation could boost confidence in XRP’s long-term value.
If passed, the bill could influence other states to evaluate similar measures for digital assets like XRP. This would mark a notable shift in the U.S. crypto policy landscape. More aligned tax frameworks across states could pave the way for standardized regulations nationwide.
Stocks Included in Florida’s Capital Gains Relief
In addition to cryptocurrencies, the proposed bill would exempt capital gains tax on stocks traded by Florida residents. This aspect broadens the bill’s impact beyond digital assets and appeals to traditional investors. The move aligns with efforts to make Florida more competitive in financial markets.
The state-level relief would not affect federal tax obligations, which investors must still meet. However, the savings from local tax cuts may influence portfolio strategies and long-term stock holdings. As a result, more traders may consider relocating or expanding operations within Florida.
If passed, the bill could serve as a model for integrating crypto and traditional finance under one tax-friendly framework. This approach may attract more fintech companies and boost Florida’s reputation as a hub for financial innovation. Broader adoption of similar laws could reshape how other states treat capital gains across asset classes.
