Minnesota Bitcoin Act Pushes Crypto for State Investments and Taxes

Minnesota State Senator Jeremy Miller has introduced the Minnesota Bitcoin Act, a proposal that could make the state one of the first to officially embrace Bitcoin and other cryptocurrencies.

What makes this especially interesting? Just a few years ago, Miller was a Bitcoin skeptic. Now, he’s leading the charge to bring crypto into state investments, retirement plans, and even tax payments.

A Step Toward Crypto Adoption in Minnesota

The Minnesota Bitcoin Act (SF2661), introduced on March 18, aims to modernize financial systems, expand payment options, and create new investment opportunities. If passed, it would allow the state to use Bitcoin for investments, retirement accounts, and even tax payments.

“As I do more research on cryptocurrency and hear from more and more constituents, I’ve gone from being highly skeptical to learning more about it, to believing in Bitcoin and other cryptocurrencies,” Miller noted in a March 18 statement.

Bitcoin as a Tool for Financial Growth

The bill would allow the Minnesota State Board of Investment to invest in Bitcoin and other cryptocurrencies, just as it does with traditional assets like stocks and bonds. Miller believes this could help boost the state’s financial future.

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

He also noted that Bitcoin is a versatile digital asset that can be used as an investment, a global currency, or a hedge against inflation. Currently, 23 other states are considering similar Bitcoin reserve bills.

The bill also proposes allowing Minnesota state employees to add Bitcoin and other cryptocurrencies to their retirement plans. Additionally, residents would have the option to pay state taxes and fees using Bitcoin.

Other States Are Moving Toward Bitcoin

Minnesota is not alone in exploring cryptocurrency policies. Texas lawmakers are advancing a proposal for a state-managed Bitcoin reserve. New Hampshire is considering allowing state investments in Bitcoin, while Colorado and Utah already accept cryptocurrency for tax payments.

Louisiana has integrated crypto into some state service payments, and the federal government is actively reviewing proposals for a national Bitcoin reserve.

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One major feature of the bill is a tax benefit. Investment gains from Bitcoin and other cryptocurrencies would be exempt from state income taxes. Currently, up to $10,000 in state taxes can be deducted from federal tax returns, but amounts beyond that are taxed at both state and federal levels. The bill aims to ease this tax burden for crypto investors.

A Growing Federal Interest in Bitcoin

The push for a Bitcoin reserve is also happening at the federal level. Last July, Senator Cynthia Lummis introduced the Strategic Bitcoin Reserve Act, which would require the U.S. government to buy 200,000 Bitcoin annually for five years, totaling 1 million Bitcoin. On March 12, she reintroduced the BITCOIN Act, allowing the federal government to build a Bitcoin reserve exceeding 1 million BTC.

If Bitcoin is the future of finance, Minnesota is making sure it’s not left behind in the past.

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