Minnesota Senator proposes Bitcoin Act after moving from skeptic to follower

Minnesota Senator Jeremy Miller has introduced the Minnesota Bitcoin Act.

“I'm very skeptical about it, and I'm doing more research on cryptocurrencies and hearing from more and more components, so I'm learning more about it and trusting Bitcoin and other cryptocurrencies,” Miller said in a statement on March 18th.

Miller said the bill aims to “promote the prosperity” of Minnesotan by allowing Minnesota's Investment Commission to invest state assets in Bitcoin (BTC) and other cryptocurrencies, as they invest in traditional assets.

According to Bitcoin law, several other US states have introduced similar Bitcoin purchase bills, while 23 states have introduced legislation that create Bitcoin sanctuaries.

Under Miller's bill, Minnesota employees can add Bitcoin and other cryptocurrencies to their retirement accounts.

It also offers residents the option to pay state taxes and fees in Bitcoin. Colorado and Utah already accept codes to pay taxes, while Louisiana allows state services.

Returns from investments from Bitcoin and other cryptocurrencies are also exempt from state income tax. In the United States, up to $10,000 paid to a state can be deducted from federal tax under state and local tax credits, but any amounts exceeding that are subject to both state and federal tax liability.

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The rise in US states proposing the Bitcoin Reserve bill follows Sen. Cynthiaramis's Strategic Bitcoin Reserve Act in July.

However, on March 12, Ramis proposed a newly reintroduced Bitcoin Act, which could allow the government to hold more than 1 million Bitcoin as part of a newly established reserve.

Bitcoin has shown significant benefits in recent years compared to traditional assets. According to Curvo data, from August 2011 to January 2025, Bitcoin recorded a combined annual growth rate of 102.36%, compared to the S&P 500's 14.83%.

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