Minnesota Senator Proposes Bitcoin Investment for State Assets

Minnesota state Senator Jeremy Miller has introduced the Minnesota Bitcoin Act, a significant development that reflects a shift in his perspective on cryptocurrency. Initially a skeptic, Miller has since become an advocate for Bitcoin after conducting thorough research and engaging with his constituents. The bill, drafted by Miller, seeks to promote prosperity for Minnesotans by allowing the Minnesota State Board of Investment to invest state assets in Bitcoin and other cryptocurrencies, mirroring traditional investment practices.

The Minnesota Bitcoin Act includes several key provisions. State employees would be able to include Bitcoin and other cryptocurrencies in their retirement accounts, providing them with additional investment options. Residents would also have the option to pay state taxes and fees using Bitcoin, a feature already implemented in states like Colorado and Utah. Furthermore, the bill proposes exempting investment gains from Bitcoin and other cryptocurrencies from state income taxes, offering a potential tax advantage for investors.

Miller's proposal is part of a broader trend in the United States, where several states have introduced similar legislation to create Bitcoin reserves. This movement follows Senator Cynthia Lummis' Strategic Bitcoin Reserve Act, which directs the federal government to purchase 200,000 Bitcoin annually over five years, totaling 1 million Bitcoin. Lummis recently reintroduced the BITCOIN Act, which allows the government to hold more than 1 million Bitcoin as part of its reserve.

The increasing interest in Bitcoin among state legislators reflects the cryptocurrency's significant gains compared to traditional assets. Bitcoin has shown a compound annual growth rate of 102.36% from August 2011 to January 2025, outperforming the S&P 500's 14.83% growth rate during the same period. This performance has likely influenced lawmakers to consider Bitcoin as a viable investment option for state assets.

Miller's bill represents a strategic move to position Minnesota at the forefront of financial innovation. By embracing cryptocurrency, the state aims to attract investment and foster economic growth. The proposal also aligns with the growing acceptance of digital currencies in various sectors, including finance, technology, and retail. As more states explore the potential of Bitcoin, Minnesota's initiative could set a precedent for others to follow, potentially reshaping the financial landscape of the United States.