Senator Pushes Bold Plan to Make Minnesota Buy Bitcoin

Minnesota could soon join a growing list of states looking to integrate Bitcoin into state finances. Senator Jeremy Miller (R-Winona) has introduced the Minnesota Bitcoin Act (SF2661), a bill aimed at adding Bitcoin to state investment portfolios, updating payment systems, and creating new financial options for residents.

The proposal, if passed, would allow the Minnesota State Board of Investment (SBI) to invest state funds in Bitcoin and other cryptocurrencies in the same way it is used to invest in stocks and bonds. This would also give residents the means to pay state taxes and fees in Bitcoin. Another option is for state employees to also be able to invest Bitcoin in their retirement plans as a means of saving for the future.

Senator Miller Says His View on Bitcoin Has Changed

Senator Miller admitted that he was not always in favor of Bitcoin but changed his mind after hearing from residents and researching its potential.

“There was a time when I didn’t think much of Bitcoin,” Miller said. “But the more I studied it and spoke with people who understand it, the clearer it became that digital assets are going to play a major role in the economy. This bill is about making sure Minnesota is ready for that future.”

Miller explained that Bitcoin is no longer just a niche investment, but a financial tool that can be used for long-term savings, inflation protection, and cross-border transactions. He believes Minnesota has an opportunity to take the lead in crypto adoption at the state level.

What the Minnesota Bitcoin Act Would Change

The bill would authorize Minnesota to allocate state funds to Bitcoin, adding cryptocurrency to its investment strategy. It would also allow taxpayers to use Bitcoin to pay taxes and fees, making Minnesota one of the few states to accept digital currency for government transactions.

Additionally, state employees would be able to invest in Bitcoin through their retirement plans, providing them with more options for long-term savings. The proposal also includes a tax incentive, ensuring that profits from Bitcoin investments would not be subject to state income taxes, and encouraging more individuals and businesses to participate in the crypto economy.

If approved, Minnesota would join a small but growing number of states actively integrating cryptocurrency into government operations.

Other States Are Also Exploring Bitcoin Investment

Minnesota is not alone in considering Bitcoin for government use. Several other states have introduced similar legislation aimed at incorporating cryptocurrency into public finances.

Texas lawmakers are advancing a plan to create a state-managed Bitcoin reserve, a concept that has also gained traction in nearly two dozen other states. New Hampshire legislators are discussing whether the state should put its money into Bitcoin. Colorado and Utah have already accepted cryptocurrency for tax payments while Louisiana allows it for certain state services.

Senator Cynthia Lummis in the U.S. Senate has proposed the Strategic Bitcoin Reserve Act that would mandate the U.S. government to purchase 1M Bitcoin over five years. A revised version of the BITCOIN Act was recently revised, and this reserve could be expanded even further.

Bitcoin’s Growth Compared to Traditional Investments

Over the years bitcoin has proved more successful in comparison to traditional financial assets. According to data from Curvo between August 2011 and January 2025, Bitcoin had an annual growth rate of 102.36% while S&P 500’s was 14.83% during the same period.

At press time, Bitcoin was trading at $83,187.67, indicating a 1.07% increase in the past 24 hours.

With an increasing number of states examining Bitcoin as a viable financial tool, conversations about Bitcoin’s role in government investment strategies are growing in strength. If the bill passes, Minnesota would begin an example for other states that are contemplating similar policies.