A new bill introduced in the Minnesota State Senate seeks to allow state investments in Bitcoin and expand cryptocurrency use in public financial systems. The Minnesota Bitcoin Act (SF2661), proposed by Senator Jeremy Miller on March 18, aims to position the state as a leader in digital assets while modernizing its financial policies.

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.

As more states embrace crypto-friendly policies, Minnesota’s Bitcoin Act could mark a significant step toward integrating digital assets into state-level financial systems.