Minnesota senator proposes Bitcoin Act after going from skeptic to believer

Senator Jeremy Miller of Minnesota has taken a significant step toward embracing cryptocurrencies with the introduction of the Minnesota Bitcoin Act. This legislative proposal emerges from a personal transformation for Miller, who originally held a skeptical view of Bitcoin. “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,” he stated in a March 18 announcement about the bill.

The primary objective of the Minnesota Bitcoin Act is to foster economic growth for the state. The bill seeks to empower the Minnesota State Board of Investment to allocate state assets into Bitcoin and other cryptocurrencies, paralleling their investment in conventional financial assets. Given the growing trend among U.S. states to introduce similar legislation, Miller’s initiative places Minnesota at the forefront of cryptocurrency acceptance. According to data from Bitcoin Laws, a total of 23 states have introduced legislation aimed at creating Bitcoin reserves, with 39 distinct bills being proposed nationwide.

Under this proposed legislation, Minnesota state employees will have the option to include Bitcoin and other cryptocurrencies in their retirement accounts, marking a progressive shift in retirement planning. Furthermore, the bill will allow Minnesota residents to settle state taxes and fees using Bitcoin. States like Colorado and Utah have already started accepting cryptocurrencies for tax payments, while Louisiana permits the use of digital currencies for certain state services.

A noteworthy aspect of the Minnesota Bitcoin Act is its tax implications. Gains from Bitcoin investments would not be subjected to state income taxes, providing a financial advantage to investors. In the U.S., individuals can deduct up to $10,000 paid to the state from their federal taxes under the state and local tax deduction; however, amounts exceeding this number are typically subject to both state and federal tax obligations.

This legislative move aligns with a broader trend observed in the U.S., where state governments are increasingly recognizing the potential of cryptocurrencies. This traction gained further momentum following Senator Cynthia Lummis’ Strategic Bitcoin Reserve Act, introduced in July, which proposed a federal initiative to acquire 200,000 Bitcoin every year for five years, culminating in a reserve of 1 million Bitcoin. Lummis has since reintroduced a new BITCOIN Act, potentially allowing the federal government to maintain an even larger Bitcoin reserve.

The financial performance of Bitcoin compared to traditional assets has been striking. From August 2011 to January 2025, Bitcoin has exhibited a compound annual growth rate (CAGR) of 102.36%, vastly outpacing the S&P 500, which reported a CAGR of 14.83%, as highlighted by recent data from Curvo.

As states like Minnesota explore infrastructure for cryptocurrency adoption, the conversations around digital currencies continue to evolve, reflecting a broader shift in how governments and individuals perceive the future of finance.