Minnesota Senator Proposes Bitcoin Act After Transitioning from Skeptic to Believer

Minnesota State Senator Jeremy Miller has become the latest legislator to advocate for Bitcoin investment, introducing the **Minnesota Bitcoin Act** after a complete shift in his perspective on the cryptocurrency. The bill, which Miller unveiled on March 18, reflects his journey from initial skepticism to a firm belief in Bitcoin’s potential.

A Change of Heart on Bitcoin

In his statement, Senator Miller shared that his view on cryptocurrency evolved significantly after conducting further research and engaging with constituents. "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 and other cryptocurrencies," Miller said.

The Minnesota Bitcoin Act aims to promote economic prosperity for Minnesotans by enabling the **Minnesota State Board of Investment** to invest state assets in Bitcoin and other cryptocurrencies, much like it does with traditional investments. This legislation represents a growing trend among U.S. states looking to explore Bitcoin’s role as a potential store of value and investment asset.

Key Provisions of the Minnesota Bitcoin Act

If passed, the bill would allow Minnesota state employees to add Bitcoin and other cryptocurrencies to their retirement accounts, providing them with an additional avenue for securing their financial futures. Additionally, the bill would give Minnesota residents the option to pay state taxes and fees using Bitcoin—a measure already adopted in states like Colorado and Utah, where cryptocurrencies are accepted for tax payments. Louisiana has also implemented a similar system, allowing residents to use crypto for state services.

Another notable provision of the bill is its proposal to exempt investment gains from Bitcoin and other cryptocurrencies from state income taxes. This would provide a tax incentive for cryptocurrency investors and further encourage the adoption of digital currencies in Minnesota. Under current U.S. federal tax law, individuals can deduct up to $10,000 in state and local taxes from their federal taxes, but amounts above that are subject to both state and federal tax obligations.

A Growing Trend Among U.S. States

Minnesota’s Bitcoin-focused bill is part of a broader movement among U.S. states to explore Bitcoin investment and establish Bitcoin reserves. According to **Bitcoin Laws**, 23 states have introduced similar legislation to create a Bitcoin reserve. Senator **Cynthia Lummis** from Wyoming has been a key figure in this trend, having introduced the **Strategic Bitcoin Reserve Act** in July. The act proposed that the federal government purchase 200,000 Bitcoin annually for five years, totaling 1 million Bitcoin.

However, on **March 12**, Senator Lummis reintroduced the **BITCOIN Act**, a new piece of legislation that could allow the federal government to hold more than 1 million Bitcoin as part of its newly established reserve, further signaling the growing institutional interest in Bitcoin.

Bitcoin’s Performance: A Compelling Case for Investment

One of the driving forces behind the increasing interest in Bitcoin is its impressive performance as an asset. Since its inception, Bitcoin has far outpaced traditional investments in terms of growth. From August 2011 to January 2025, Bitcoin posted a compound annual growth rate (CAGR) of 102.36%, compared to the S&P 500’s much more modest 14.83%, according to **Curvo** data. This remarkable performance has led many to reconsider Bitcoin’s potential as a long-term investment, driving both individual and institutional investors to take notice.

Conclusion: Minnesota Leads the Way

Senator Jeremy Miller’s introduction of the **Minnesota Bitcoin Act** reflects the increasing recognition of Bitcoin’s potential as both an investment asset and a medium of exchange. As more U.S. states follow suit, adopting similar legislation to integrate Bitcoin into their financial systems, the future of cryptocurrency in public policy looks increasingly promising.

By proposing the addition of Bitcoin to retirement portfolios, offering residents the option to pay taxes in crypto, and exempting investment gains from state taxes, Miller’s bill could make Minnesota a leader in the Web3 and cryptocurrency space. With Bitcoin’s impressive track record and growing institutional acceptance, Minnesota’s forward-thinking approach may inspire other states to take similar action in the near future.