Key Takeaways
- Minnesota Senator Jeremy Miller introduced the Bitcoin Act.
- The bill allows Bitcoin investments, tax payments, and retirement options.
- 23 U.S. states have proposed Bitcoin reserve legislation.
Minnesota state Senator Jeremy Miller has shifted from Bitcoin skeptic to advocate, leading him to introduce the Minnesota Bitcoin Act.
The bill would allow the Minnesota State Board of Investment to allocate state funds into Bitcoin, similar to how it invests in traditional assets.
Legislative details
Miller said in a statement on March 18:
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.
The proposed legislation would also allow Minnesota state employees to add Bitcoin to their retirement accounts and give residents the option to pay state taxes and fees using Bitcoin.
Currently, Colorado and Utah accept Bitcoin for tax payments, while Louisiana permits it for certain state services.
Tax implications
Additionally, Miller’s bill seeks to exempt investment gains from Bitcoin and other digital assets from state income taxes.
Under U.S. tax law, up to $10,000 in state taxes can be deducted federally, but amounts beyond that are subject to both state and federal taxation.
Growing adoption
Minnesota joins a growing number of states exploring Bitcoin adoption.
According to Bitcoin Laws, 23 U.S. states have introduced legislation to establish Bitcoin reserves, with 39 related bills proposed nationwide.
The movement aligns with Senator Cynthia Lummis’ Strategic Bitcoin Reserve Act, which aims for the U.S. government to acquire up to 1 million Bitcoin over five years.
