Minnesota State Senator Jeremy Miller has introduced groundbreaking legislation that could position the state as a leader in cryptocurrency adoption. The Minnesota Bitcoin Act (SF2661), introduced on March 18, would allow the state to invest in Bitcoin and other cryptocurrencies while giving residents new financial opportunities.
The bill proposes multiple changes to how Minnesota handles digital assets. If passed, the Minnesota State Board of Investment would be authorized to include cryptocurrencies in the state's investment portfolio alongside traditional assets like stocks and bonds.
State employees would gain the ability to add Bitcoin and other cryptocurrencies to their retirement accounts. The legislation also aims to modernize payment systems by allowing residents to pay state taxes and fees using Bitcoin - following the path of states like Colorado and Utah that already accept cryptocurrency for tax payments.
In a notable provision, the bill would exempt investment gains from Bitcoin and other cryptocurrencies from state income taxes.
Senator Miller, who drafted the bill, describes his own journey from skepticism to support for cryptocurrency. "I've gone from being highly skeptical to learning more about it, to believing in Bitcoin and other cryptocurrencies," Miller stated on March 18.
The Minnesota proposal joins a growing trend of state-level cryptocurrency initiatives across the United States. According to Bitcoin Laws, 23 states have introduced legislation to create Bitcoin reserves, with 39 different bills related to state cryptocurrency investments currently under consideration.
The movement gained momentum following Senator Cynthia Lummis' Strategic Bitcoin Reserve Act at the federal level, which proposed the government purchase 200,000 Bitcoin annually over five years.
Bitcoin's performance has outpaced traditional investments, with data from Curvo showing a compound annual growth rate of 102.36% from August 2011 to January 2025, compared to the S&P 500's 14.83% during the same period.
Miller emphasized the bill's forward-looking approach: "I believe global digital currencies are here to stay and it's inevitable that they become more and more mainstream."