Minnesota State Senator Jeremy Miller has put forward a new bill that would allow the state to invest public funds in Bitcoin and other crypto assets. The proposed legislation, called the Minnesota Bitcoin Act, represents a complete change in Miller’s previous stance on digital currencies.
From Crypto Skeptic To Believer
In a statement released March 18, the lawmaker said that as he did an extensive research on cryptocurrency, he has gone from “being highly skeptical to learning more about it, to believing in Bitcoin and other cryptocurrencies,”
The senator now wants Minnesota to join a growing number of states exploring cryptocurrency investments. According to Bitcoin Laws, 23 states have already introduced bills to create Bitcoin reserves.
Source: Bitcoin Laws
State Investments And Employee Benefits
If passed, the bill would give the Minnesota State Board of Investment permission to put state money into Bitcoin and other cryptocurrencies, treating them like traditional investment assets.
State employees would also gain the option to add cryptocurrencies to their retirement accounts, giving them more control over their long-term savings options.
Based on reports, Bitcoin has shown strong performance compared to regular investments. From August 2011 to January 2025, Bitcoin grew at a compound annual rate of over 100%, while the S&P 500 grew at just 14% during the same period, according to Curvo data.
As of today, the market cap of cryptocurrencies stood at $2.69 trillion. Chart: TradingView
Tax Payments And Exemptions
Additionally, citizens would be able to use Bitcoin to pay state taxes and fees under the Minnesota Bitcoin Act. While Louisiana permits cryptocurrencies for governmental services, Colorado and Utah currently accept it for tax payments.
Image: Gemini Imagen
The bill’s exemption of investment gains from Bitcoin and other cryptocurrencies from state income taxes is another important component. For investors in Minnesota, this might result in substantial savings because, at the moment, the state and local tax deduction only allows cuts of up to $10,000.
Federal Efforts Gain Momentum
The push for cryptocurrency adoption isn’t limited to state governments. Senator Cynthia Lummis has been working on comparable federal legislation.
Lummis first proposed the Strategic Bitcoin Reserve Act in July. It calls for the federal government to buy 1 million Bitcoin every year for five years, for a total of 200,000 Bitcoin.
Miller’s bill comes at a time when Bitcoin prices are going up significantly. At the time of the study, Bitcoin was selling at $83,350, which shows that investors are still interested in and comfortable with it, even though its price has been acting strangely lately.
Featured image from Gemini Imagen, chart from TradingView
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