YEREVAN (CoinChapter.com) —Minnesota state Senator Jeremy Miller has introduced the Minnesota Bitcoin Act, a proposal that would allow the Minnesota State Board of Investment to invest in Bitcoin and other cryptocurrencies.
Miller, once skeptical of digital assets, now supports Bitcoin investments after research and feedback from constituents.
“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 said in a March 18 statement.
The bill proposes treating Bitcoin like other traditional assets, such as stocks and bonds, for state investments.
Minnesota Joins Other States in Bitcoin Legislation
Minnesota follows a trend among U.S. states moving toward Bitcoin adoption. According to Bitcoin Laws, 23 states have introduced legislation to create a Bitcoin reserve. In total, 39 bills related to state Bitcoin investments have been proposed nationwide.
The bill would also allow Minnesota residents to use Bitcoin for state tax payments and fees. Some states already accept cryptocurrency for tax payments. Colorado and Utah allow Bitcoin for state taxes, while Louisiana permits crypto payments for state services.
Another provision in the bill would give Minnesota state employees the option to add Bitcoin and cryptocurrencies to their retirement savings accounts.
Minnesota Bitcoin Act: BTC Investment Gains Could Get Tax Breaks
Miller’s proposal includes a provision to exempt Bitcoin investment gains from state income tax. Currently, in the U.S., the state and local tax (SALT) deduction allows taxpayers to deduct up to $10,000 paid to the state from federal taxes. Any amount above this limit is subject to both state and federal taxes.
This exemption could make Minnesota a more competitive state for Bitcoin investors.
Federal Bitcoin Reserves Gain Attention
Minnesota’s Bitcoin legislation aligns with efforts at the federal level. In July 2023, Senator Cynthia Lummis introduced the Strategic Bitcoin Reserve Act, a proposal for the U.S. government to purchase 200,000 Bitcoin per year for five years, accumulating 1 million Bitcoin.
On March 12, 2024, Lummis reintroduced the BITCOIN Act, which could allow the federal government to hold more than 1 million Bitcoin as part of a national reserve.
Bitcoin’s Performance Compared to Traditional Markets
From August 2011 to January 2025, Bitcoin achieved a compound annual growth rate (CAGR) of 102.36%, according to Curvo data. In comparison, the S&P 500 posted a CAGR of 14.83% over the same period.
Notably, as more U.S. states consider Bitcoin policies, the role of cryptocurrency in state investments continues to grow.