A Bitcoin bill has been presented to the Minnesota state senate that proposes allowing investments in Bitcoin and promotes cryptocurrency use

In a March 18 statement, Senator Jeremy Miller, who introduced the bill, said the Minnesota Bitcoin Act (SF2661) aims to modernize the state's financial landscape

A new Bitcoin bill has been tabled in the Minnesota state senate that proposes permitting investments in Bitcoin and fosters cryptocurrency use in specific domains.

In a March 18 statement, Senator Jeremy Miller, who introduced the Minnesota Bitcoin Act (SF2661), said the legislation aims to modernize the state’s financial landscape and position Minnesota as a leader in digital assets.

As part of the bill, the Minnesota State Board of Investment would be able to invest state funds in Bitcoin and other cryptocurrencies, similar to how they invest in stocks, bonds, and other traditional assets.

State employees will also have the option to diversify their retirement plans with Bitcoin and other cryptocurrencies.

The legislation would also enable residents to pay state taxes and fees with Bitcoin, continuing the trend started by states like Colorado and Utah.

Additionally, the bill includes tax incentives for cryptocurrency earnings, allowing certain gains from Bitcoin and other cryptocurrencies to be subtracted from taxable income.

“I believe global digital currencies are here to stay, and it’s inevitable that they become more and more mainstream,” Miller said in a statement.

According to the senator, cryptocurrencies would benefit Minnesota by providing “new financial opportunities” and giving the state a “strategic position to take advantage of being on the forefront of this digital revolution.”

“Crypto is a versatile digital asset that can be used in multiple ways, including as investments, global currency, or a hedge against inflation,” he added.

Minnesota joins over a dozen other U.S. states that are considering state cryptocurrency investments in 2023. Some states, like Arizona and Texas, are juggling several bills.

On March 11, Texas state lawmakers presented House Bill 4258, which allows Texas’ chief accountant and financial watchdog to invest up to $250 million of the state’s economic stabilization fund balance in Bitcoin or other kinds of crypto assets.

The bill, which is now pending in the state legislature, would permit investments in cryptocurrencies despite the lack of clear guidance on how such investments would be made or the criteria used to select crypto assets for the state’s portfolio.

The legislation follows a previous attempt in 2022 to pass a bill that would have allowed the state to invest up to 1% of its treasury in Bitcoin, which ultimately failed to gain approval.

Earlier this year, the investment arm of the University of Texas disclosed an investment of $1.5 billion in a newly launched cryptocurrency fund.