Minnesota Senator Introduces Bitcoin Act After Changing His Stance from Skeptic to Supporter

Minnesota State Senator Jeremy Miller has made his state the latest to consider investing in Bitcoin, having transitioned "from being highly skeptical" to becoming a crypto supporter.

Minnesota State Senator Jeremy Miller has introduced the Minnesota Bitcoin Act, a bill he drafted after shifting his perspective on Bitcoin.

“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 in a March 18 statement.

Miller explained that the bill seeks to “promote prosperity” for Minnesotans by allowing the Minnesota State Board of Investment to invest state assets in Bitcoin and other cryptocurrencies, similar to how it invests in traditional assets.

This follows the trend of several other U.S. states, with 23 states having proposed legislation to establish a Bitcoin reserve, according to Bitcoin Laws.

A total of 39 different bills related to state investments in Bitcoin have been introduced across 23 US states. Source: Bitcoin Laws

Under Miller's proposed bill, Minnesota state employees would have the option to add Bitcoin and other cryptocurrencies to their retirement accounts.

The bill would also allow residents to pay state taxes and fees with Bitcoin. Colorado and Utah currently accept crypto for tax payments, and Louisiana allows it for state services.

Additionally, investment gains from Bitcoin and other cryptocurrencies would be exempt from state income taxes. In the U.S., up to $10,000 paid to the state can be deducted from federal taxes under the state and local tax deduction, but amounts exceeding that are subject to both state and federal taxes.

The growing number of U.S. states proposing Bitcoin reserve bills follows Senator Cynthia Lummis’ July Strategic Bitcoin Reserve Act, which instructs the federal government to purchase 200,000 Bitcoin annually over five years, totaling 1 million Bitcoin.

However, on March 12, Lummis introduced a reintroduced version of the BITCOIN Act, which could allow the government to hold more than 1 million Bitcoin as part of a newly established reserve.

Bitcoin has demonstrated substantial growth compared to traditional assets in recent years. From August 2011 to January 2025, Bitcoin achieved a compound annual growth rate of 102.36%, whereas the S&P 500 saw a 14.83% growth rate, according to Curvo data.