Minnesota State Senator Jeremy Miller has put forth the Minnesota Bitcoin Act, a proposal that reflects his total shift in perspective regarding Bitcoin.
“As I delve deeper into cryptocurrency and receive input from numerous constituents, my perspective has evolved from skepticism to exploration, ultimately leading to my belief in Bitcoin and other cryptocurrencies,” Miller stated in a March 18 announcement.
The objective of the bill is to foster “prosperity” for the residents of Minnesota by allowing the Minnesota State Board of Investment to allocate state assets into Bitcoin 
BTCUSD and other digital currencies, similar to its current investments in traditional assets.
A host of other U.S. states have proposed comparable Bitcoin acquisition bills, with legislation to establish a Bitcoin reserve introduced in 23 states as per Bitcoin Laws.
With Miller’s bill, state employees in Minnesota would have the opportunity to include Bitcoin and other cryptocurrencies in their retirement portfolios.
Additionally, residents would have the option to pay state taxes and fees using Bitcoin. Both Colorado and Utah are already accepting cryptocurrency for tax payments, while Louisiana permits it for state services.
Any investment profits derived from Bitcoin and other cryptocurrencies would also be exempt from state income taxes. In the U.S., a maximum of $10,000 paid to the state can be deducted from federal taxes under the state and local tax deduction provision, but sums exceeding that limit are subject to both state and federal taxes.
The rise in the number of U.S. states introducing Bitcoin reserve legislation follows Senator Cynthia Lummis’ Strategic Bitcoin Reserve Act proposed in July, which aims for the federal government to acquire 200,000 Bitcoin annually over five years, culminating in a total of 1 million Bitcoin.
However, on March 12, Lummis reintroduced the BITCOIN Act, which allows the government to potentially hold over 1 million Bitcoin as part of its new reserve.
Bitcoin has demonstrated substantial growth when compared to traditional assets in recent years. From August 2011 to January 2025, Bitcoin achieved a compound annual growth rate of 102.36%, as opposed to the S&P 500’s 14.83%, according to data from Curvo.
