Minnesota Senator Jeremy Miller introduced SF2661 on March 18, 2025, proposing changes that would permit state Bitcoin investments and certain cryptocurrency uses in public finance. It was a proposed bill, rather than an investment program already in operation.

Key Provisions of the Bill

If passed, SF2661 would:

• Permit the Minnesota State Board of Investment to allocate state funds to Bitcoin and other cryptocurrencies, treating them similarly to stocks and bonds.

• Allow state employees to include Bitcoin and crypto assets in their retirement plans.

• Enable residents to pay state taxes and fees using Bitcoin, similar to programs in Colorado and Utah.

• Introduce tax incentives for cryptocurrency earnings, allowing certain crypto gains to be subtracted from taxable income.

Senator Miller believes digital currencies are here to stay, emphasizing that crypto offers new financial opportunities and helps the state gain a strategic advantage in the evolving digital economy. He also highlighted Bitcoin’s versatility as an investment, global currency, and hedge against inflation.

Growing Trend Among U.S. States

Minnesota joins a growing list of states exploring cryptocurrency investment policies. Recently, on March 11, Texas lawmakers introduced House Bill 4258, proposing that the state allocate up to $250 million from its economic stabilization fund into Bitcoin and other crypto assets.

Additionally, Senator Cynthia Lummis reintroduced an updated version of her Strategic Bitcoin Reserve Act on March 12, which would allow the U.S. government to hold more than 1 million Bitcoins.

The proposal formed part of a wider debate over whether and how US states should hold digital assets.