Key Takeaways
- Minnesota's proposed law would let state funds and retirement accounts invest in Bitcoin.
- Alabama's bills indirectly target Bitcoin by requiring a $750 billion market cap for eligible assets.
- Bitcoin reserve legislation has been introduced in 26 U.S. states, with Arizona leading the way.
Lawmakers in Alabama and Minnesota have introduced new legislation aimed at allowing their states to hold Bitcoin as a reserve asset, joining a growing number of states exploring similar initiatives.
Minnesota’s Bitcoin Act
In Minnesota, Representative Bernie Perryman filed the “Minnesota Bitcoin Act” (HF 2946) on April 1, mirroring a bill introduced in March by Senator Jeremy Miller.
The legislation would enable the state’s investment board to allocate funds to Bitcoin and other digital assets, permit state employees to include Bitcoin in their retirement plans, and exempt digital asset gains from state income tax.
It would also allow residents to pay state taxes and fees using Bitcoin.
Alabama’s companion Bills
On the same day, Alabama introduced two companion bills: Senate Bill 283 by Senator Will Barfoot and House Bill 482 led by Representative Mike Shaw.
While these bills do not name Bitcoin directly, they restrict investment to assets with a market value of at least $750 billion—criteria currently only met by Bitcoin.
Growing trend
These developments bring the total number of U.S. states with introduced Bitcoin reserve bills to 26.
Arizona is currently the furthest along in the legislative process, according to the tracking site Bitcoin Laws.
Meanwhile, similar efforts have been defeated in five states, including Pennsylvania, Montana, and Wyoming.
