Minnesota lawmaker introduces Bitcoin Act to allow state investments in crypto

A Bitcoin bill has been presented to the Minnesota state senate that proposes allowing investments in Bitcoin and promotes cryptocurrency use in certain areas.

In a March 18 statement, Senator Jeremy Miller, who introduced the bill, said the Minnesota Bitcoin Act (SF2661) aims to modernize the state’s financial landscape and position Minnesota as a leader in digital assets.

Under SF 26661, the Minnesota State Board of Investment would be allowed to allocate state funds to Bitcoin and other cryptocurrencies, treating them similarly to traditional investments like stocks and bonds.

Further, state employees will have the option to include Bitcoin and other cryptocurrencies in their retirement plans.

The legislation would also allow residents to pay state taxes and fees with Bitcoin, following in the footsteps of states like Colorado and Utah. 

Additionally, the bill includes tax incentives for cryptocurrency earnings, allowing certain gains from Bitcoin and other cryptocurrencies to be subtracted from taxable income.

“I believe global digital currencies are here to stay, and it’s inevitable that they become more and more mainstream,” Miller said.

According to him, cryptocurrencies would benefit Minnesota by providing “new financial opportunities” and giving the state a “strategic position to take advantage of being on the forefront of this digital revolution.

“Crypto is a versatile digital asset that can be used in multiple ways, including as investments, global currency, or a hedge against inflation,” he added.

Minnesota follows over a dozen other U.S. states that are mulling state cryptocurrency investments. Some states like Arizona and Texas have introduced multiple bills.

On March 11, Texas state lawmakers presented House Bill 4258, which allows Texas’ chief accountant and financial watchdog to invest up to $250 million of the state’s economic stabilization fund balance in Bitcoin or other kinds of crypto assets.

The following day, Senator Cynthia Lummis presented an updated version of her July Strategic Bitcoin Reserve Act, which allows the government to hold more than 1 million Bitcoins.