Minnesota Legislator Proposes Bitcoin Bill for Cryptocurrency State Investments

Proposal for a Bitcoin bill has been made in the Minnesota state senate, which would permit investments in Bitcoin and encourage the use of cryptocurrency in certain sectors.

In a statement released on March 18, Senator Jeremy Miller, who introduced the bill, said that the Minnesota Bitcoin Act (SF2661) aims to update the state's financial system and establish Minnesota as a frontrunner in digital assets.

Under SF 26661, the Minnesota State Board of Investment would be authorized to allocate state funds to Bitcoin and other cryptocurrencies, treating them in the same way as traditional investments such as stocks and bonds.

Furthermore, state employees would have the choice to include Bitcoin and other cryptocurrencies in their retirement plans.

The legislation would also enable residents to pay state taxes and fees with Bitcoin, following the example set by states such as Colorado and Utah. 

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

"I believe that global digital currencies are here to stay, and it's inevitable that they become more and more widespread," Miller said.

He believes that cryptocurrencies would be beneficial to Minnesota by providing "new financial opportunities" and giving the state a "strategic position to take advantage of being at the forefront of this digital revolution."

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

Minnesota is one of over a dozen U.S. states that are considering state cryptocurrency investments. Some states, such as Arizona and Texas, have proposed multiple bills.

On March 11, Texas state legislators introduced 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 types of crypto assets.

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