Bitcoin News Today: Missouri Pioneers Tax-Free Crypto Gains for Retirees

Bitcoin has become an increasingly attractive option for Americans seeking to grow wealth without incurring tax liabilities, thanks to the growing intersection between crypto investing and tax policy. Adam Bergman, founder of IRA Financial, has emphasized in an interview with Bitcoin News that individuals can now legally and strategically use retirement accounts to invest in cryptocurrencies like Bitcoin, while enjoying potential tax-free gains. This approach leverages existing tax-deferred or tax-free structures such as IRAs and Roth IRAs, aligning with evolving legislative changes that support capital gains tax reductions at the state level.

Missouri has set a precedent with the passage and signing of House Bill 594, which eliminates capital gains tax for individual filers starting January 1, 2025. The legislation allows residents to deduct 100% of capital gains reported for federal tax purposes when calculating their state adjusted gross income. This includes gains from assets such as stocks, real estate, and cryptocurrencies, making Missouri the first state in the nation to fully exempt individual capital gains from state taxation. For corporations, the benefits are contingent on the top individual tax rate dropping to 4.5% or lower; with the current rate at 4.7%, corporations will not qualify for deductions in 2025.

This legislative shift highlights a broader trend where states are exploring ways to reduce tax burdens on capital gains, particularly in the context of cryptocurrency. Bergman's advocacy reflects a growing interest among Americans in leveraging these policies for long-term wealth accumulation. He argues that retirement accounts offer a viable solution, as gains realized within these accounts are not subject to immediate taxation, allowing investors to compound returns without interference from annual capital gains taxes.

Tax experts also note that while the IRS has clarified many of the rules around cryptocurrency transactions, the landscape is still complex. Transactions such as the sale of cryptocurrency, trading between coins, or using crypto to buy goods or services trigger taxable events. However, investing within a retirement account allows individuals to hold and grow cryptocurrency without incurring tax liability on the appreciation, provided the account is structured correctly. This approach aligns with broader strategies for tax efficiency, especially as regulatory clarity continues to evolve.

Critically, the use of IRAs for cryptocurrency investments is not without challenges. Not all IRA custodians allow for such investments, and compliance with IRS regulations is essential. Bergman advises investors to seek out IRA Financial and similar firms that specialize in alternative asset IRA accounts, ensuring that all transactions are handled in a manner consistent with federal tax law. Additionally, the use of tax software and accurate recordkeeping is recommended to ensure that all transactions are reported correctly and that investors are not exposed to penalties.

At the same time, other jurisdictions are taking a different approach. In Europe, particularly in countries like Poland, regulatory frameworks such as the MiCA directive are shaping the crypto landscape. While these regulations aim to bring order and transparency to the sector, some industry experts argue that overly strict rules could stifle innovation. Poland’s proposed laws, for instance, are seen as more stringent than the EU directive, potentially deterring local fintech companies and driving them to operate elsewhere. This underscores the global disparity in how governments are approaching crypto regulation, with some prioritizing investor protection and market stability, while others are exploring ways to foster innovation and economic growth.

The U.S., meanwhile, continues to refine its approach to crypto taxation and regulation. With the release of new IRS forms and increased data-sharing between exchanges and tax authorities, the days of underreporting or ignoring crypto gains are becoming increasingly difficult. The 2025 tax year will mark a significant shift, with more detailed reporting requirements and the potential for greater scrutiny of transactions involving digital assets. For investors, this means a need for proactive planning and a clear understanding of how to structure their investments in a tax-efficient manner—strategies that Bergman and others argue can be effectively managed through retirement accounts.

As the legislative and regulatory environment continues to evolve, Americans have more tools at their disposal to invest in Bitcoin and other cryptocurrencies while minimizing their tax exposure. Bergman’s insights and the legislative changes in Missouri represent a growing trend toward tax-friendly investment vehicles that enable individuals to participate in the crypto economy without sacrificing financial flexibility or facing unnecessary tax liabilities.

Source: [1] Department of Revenue News Release (https://dor.mo.gov/news/newsitem/uuid/15044650-59dd-48f4-975a-01988d485255) [2] 10 Things You Must Know About Crypto Taxes Before ... (https://www.aol.com/10-things-must-know-crypto-131105651.html) [3] Bitcoin Ignores US-EU Trade Deal With $114K In Focus (https://cointelegraph.com/news/bitcoin-price-dip-hinges-on-114k-as-markets-shrug-off-us-eu-trade-deal) [4] Will overregulation mean Poland and Europe miss out on ... (https://www.euronews.com/next/2025/08/22/will-overregulation-mean-poland-and-europe-miss-out-on-crypto) [5] Bitcoin Falls Even as U.S., EU Reveal Deal on Trump Tariffs (https://coingape.com/bitcoin-falls-even-as-u-s-eu-reveal-deal-on-trump-tariffs/)