Minnesota could become one of the first states in the nation to embrace Bitcoin and other cryptocurrencies for state investments, retirement plans, and even tax payments under a new proposal from Senator Jeremy Miller (R-Winona).

Sen. Miller unveiled the Minnesota Bitcoin Act (SF2661) on March 18, a bill that aims to expand the state’s financial landscape and investment options, modernize payment methods, and provide new financial opportunities for residents.

Sen. Miller said the proposal is designed to make Minnesota a national trailblazer in crypto.

“As I do more research on cryptocurrency and hear from more and more constituents, I’ve gone from being highly skeptical, to learning more about it, to believing in Bitcoin and other cryptocurrencies,” Senator Miller said. “I believe global digital currencies are here to stay and it’s inevitable that they become more and more mainstream. Crypto is a versatile digital asset that can be used in multiple ways, including as investments, global currency, or a hedge against inflation. My goal with this legislation is to promote prosperity for people across the state by putting Minnesota in a strategic position to take advantage of being on the forefront of this digital revolution.”

If passed, the Minnesota Bitcoin Act would:

• Boost State Investments: The Minnesota State Board of Investment (SBI) would have the option to invest state assets in Bitcoin and other cryptocurrencies, alongside traditional investments like stocks and bonds.
• Expand Retirement Options: State employees would be able to include Bitcoin and other cryptocurrencies in their retirement accounts, giving them another way to build wealth for the future.
• Modernize Payments: Minnesotans would have the option to pay state taxes and fees using Bitcoin, offering greater convenience and flexibility.
• Encourage Innovation: Investment gains from Bitcoin and other cryptocurrencies would be exempt from state income taxes, creating incentives for residents and businesses to explore this emerging financial space.

Bitcoin in other states:

Several states have introduced similar crypto and Bitcoin measures.

• Texas lawmakers are advancing a plan to create a state-managed Bitcoin reserve, as are nearly two dozen other states.
• New Hampshire’s legislature is considering a bill to permit state investment in Bitcoin, as are a number of other states.
• Colorado and Utah accept crypto for tax payments, while Louisiana accepts crypto for payments state services

The federal government is also considering multiple proposals pertaining to crypto, including a federal strategic Bitcoin reserve.