Minnesota Senator Advocates for State Crypto Investments with New Bill
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A Shift in Perspective: From Crypto Skepticism to Advocacy
On March 18, Minnesota State Senator Jeremy Miller, once a skeptic of digital currencies, announced a groundbreaking proposal for the state to venture into cryptocurrency investments. This new initiative, known as the Minnesota Bitcoin Act, signifies a notable transformation in Miller’s stance regarding digital assets. The lawmaker revealed that extensive research had shifted his views from skepticism to a firm belief in Bitcoin and other cryptocurrencies.
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Minnesota is poised to join a growing list of states considering crypto investments. As per Bitcoin Laws, 23 states have already introduced legislation aimed at establishing Bitcoin reserves.
State Investments and Employee Benefits: A New Era
The proposed bill seeks to empower the Minnesota State Board of Investment with the authority to allocate public funds into Bitcoin and other cryptocurrencies, treating them as conventional investment vehicles. Furthermore, state employees might soon have the opportunity to incorporate cryptocurrencies into their retirement portfolios, enhancing their control over future financial planning.
Reports indicate that Bitcoin has consistently outperformed traditional investments. From August 2011 to January 2025, Bitcoin achieved a compound annual growth rate exceeding 100%, vastly surpassing the S&P 500’s 14% growth rate over the same period, as per Curvo’s analysis.
Currently, the total market capitalization of cryptocurrencies stands at an impressive $2.69 trillion.
Revolutionizing Taxation: Payments and Exemptions
The Minnesota Bitcoin Act also proposes allowing residents to use Bitcoin for state tax and fee payments. While states like Louisiana, Colorado, and Utah have already embraced cryptocurrencies for various governmental transactions, Minnesota aims to expand this utility further.
A significant component of the bill is the exemption of investment gains from Bitcoin and other cryptocurrencies from state income taxes. This could lead to substantial savings for Minnesota investors, who currently face restrictions on state and local tax deductions, capped at $10,000.
Federal Momentum: A Nationwide Shift
The movement towards cryptocurrency adoption is not confined to state boundaries. On a federal level, Senator Cynthia Lummis is advocating for similar initiatives. Her Strategic Bitcoin Reserve Act, introduced in July, proposes the federal acquisition of 1 million Bitcoin annually over five years, totaling 200,000 Bitcoin.
Miller’s proposal coincides with a significant upswing in Bitcoin’s market value. At the time of this report, Bitcoin’s price was $83,350, reflecting sustained investor interest despite recent volatility.
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