Senator Jeremy Miller (R-Winona) introduced the Minnesota Bitcoin Act (SF2661) on March 18, aiming to expand the state’s financial tools by incorporating cryptocurrency into state investment strategies, public retirement plans, and tax payment systems.
The proposed legislation would allow the Minnesota State Board of Investment (SBI) to include Bitcoin and other digital assets in its portfolio, alongside existing investments such as stocks and bonds.
State employees would gain the option to allocate a portion of their retirement accounts to cryptocurrency. The bill also includes provisions for residents to pay state taxes and fees using Bitcoin.
Additionally, capital gains from cryptocurrency investments would be excluded from state income taxes, offering an incentive for individual and business engagement in this asset class.
Senator Miller stated that his views on cryptocurrency have shifted over time through research and discussions with constituents.
He expressed confidence in the long-term presence and utility of global digital currencies, describing them as tools for investment, currency exchange, and inflation hedging. The legislation seeks to establish Minnesota as an early adopter of digital financial infrastructure.
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 Jeremy Miller
“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,” Senator Miller said.
If passed, the Minnesota Bitcoin Act would:
- 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.
- 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.
- Minnesotans would have the option to pay state taxes and fees using Bitcoin, offering greater convenience and flexibility.
- 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.
Several states are considering or have enacted similar policies. Texas is advancing a plan to create a state-managed Bitcoin reserve.
New Hampshire’s legislature is reviewing a proposal to permit state investment in Bitcoin. Colorado and Utah currently accept cryptocurrency for tax payments, and Louisiana permits it for state service payments.
At the federal level, multiple proposals related to cryptocurrency are under consideration, including the establishment of a national Bitcoin reserve.
