Minnesota could become one of the first states in the US to integrate Bitcoin and other cryptocurrencies into state investments, retirement plans, and tax payments under a new legislative proposal introduced by Senator Jeremy Miller (R-Winona).

Sen. Miller unveiled the Minnesota Bitcoin Act (SF2661) on Tuesday, a bill aimed at expanding the state's financial options, modernizing payment systems, and fostering innovation in the crypto sector. If passed, the legislation would position Minnesota as a leader in digital asset adoption.

“As I do more research on cryptocurrency and hear from more and more constituents, I’ve gone from being highly skeptical to believing in Bitcoin and other cryptocurrencies,” Miller said. “I believe global digital currencies are here to stay, and it’s inevitable they become more mainstream. Crypto is a versatile digital asset that can be used in multiple ways, including investments, global currency, or as a hedge against inflation.”‍

Key Provisions of the Minnesota Bitcoin Act

Miller emphasized that the bill is designed to create financial opportunities for Minnesotans while placing the state at the forefront of the digital revolution.

The bill proposes allowing the Minnesota State Board of Investment to allocate state assets to Bitcoin and other cryptocurrencies, alongside traditional investments such as stocks and bonds. It would also permit state employees to include Bitcoin and other digital assets in their retirement accounts, providing an additional option to build wealth. 

The legislation seeks to modernize state payment systems by enabling Minnesotans to pay state taxes and fees using Bitcoin, offering greater convenience and flexibility. 

Additionally, investment gains from Bitcoin and other cryptocurrencies would be exempt from state income taxes, encouraging individuals and businesses to explore digital asset investment opportunities.‍

Growing Trend of State-Level Bitcoin Adoption

Minnesota’s move comes amid a growing trend of US states considering Bitcoin-related legislation. Texas lawmakers are advancing a plan to create a state-managed Bitcoin reserve, while New Hampshire is reviewing a proposal to permit state investment in Bitcoin. 

Colorado and Utah already accept cryptocurrency for tax payments, and Louisiana allows crypto payments for state services. At the federal level, multiple proposals are under discussion, including the establishment of a strategic Bitcoin reserve. 

According to Bitcoin Laws, 23 states have introduced legislation to create Bitcoin reserves, reflecting a nationwide push for greater cryptocurrency integration into government financial systems.

Despite the wave of legislative proposals, Bitcoin continues to trade below the $90,000 mark. Over the past seven days, BTC has experienced a 1.89% increase, while its current price stands at $83,196.85, reflecting a 0.49% surge in the last 24 hours. 

However, market sentiment remains cautious, with CoinMarketCap’s Fear and Greed Index showing a Fear level of 23, indicating lingering investor uncertainty.