A Bitcoin-focused bill has been introduced in the Minnesota state senate, aiming to modernize the state’s financial system and encourage cryptocurrency adoption.
The Minnesota Bitcoin Act (SF2661), sponsored by Senator Jeremy Miller, aims to legalize Bitcoin and affirm the possibility of using digital currencies for state-related transactions.
If enacted, the bill would allow the Minnesota State Board of Investment to invest state money in Bitcoins and other virtual currencies in the same way that it invests in stocks or bonds. Likewise, state employees may choose to incorporate the Bitcoin investment into their employee retirement funds, which will expand investment opportunities.
The bill also allows residents to pay taxes and fees to the state using Bitcoin. This amplifies similar actions that are being undertaken by other states, such as Colorado and Utah, which are trying to incorporate virtual assets into the economy.
One of the provisions of the legislation relates to the taxation of cryptocurrency income. Some Bitcoin and other digital asset gains would be eligible for deductions that can help reduce assessable income. As noted by Miller, this approach sought to bring in more investments from the cryptocurrency realm and also offer benefits to residents on the economic front.
Miller emphasized that the use of digital currencies is prevalent, and Minnesota had to be at the forefront of this movement. He said that cryptocurrencies can bring new financial prospects and increase the economic potential of the state.
“I believe global digital currencies are here to stay, and it’s inevitable that they become more and more mainstream,” Miller noted.
Growing State-Level Crypto Adoption
Minnesota follows other states that are considering bills for investing in crypto assets. Both Arizona and Texas have come up with similar bills, which shows the growing adoption of state legislation on digital assets.
On March 11, lawmakers of the Texas House of Representatives submitted House Bill 4258, which proposes that the state’s chief financial officer invest up to $250 million of the state’s economic stabilization fund in Bitcoin and other cryptocurrencies.
Arizona’s Senate also passed the Strategic Digital Assets Reserve bill (SB 1373), which seeks the creation of an Arizona Digital Assets Reserve Fund under the management of the Arizona State Treasurer. At present, at least 18 states are considering crypto reserve bills. As CNF recently reported, Oklahoma passed the Bitcoin Freedom Act, allowing state employees to accept, make or receive payments in Bitcoin.
These measures align with a national debate on the use of cryptocurrencies. In July, United States US Sen. Cynthia Lummis introduced the Strategic Bitcoin Reserve Act and recommended the US government buy one million BTC within five years.
Lummis recently reintroduced the BITCOIN Act on March 12, suggesting that the government will amass more of Bitcoin beyond this initial target. Bitcoin adoption in the United States has already grown with the ETFs, but the community is expecting more with an American Bitcoin-backed reserve.