- Minnesota’s Bitcoin Act allows crypto for investments, retirement plans, and tax payments.
- Senator Miller aims to make Minnesota a leader in Bitcoin adoption with this legislation.
- The bill proposes tax-free crypto gains to attract investors and boost economic growth.
Minnesota is making significant efforts to integrate cryptocurrency in the state’s affairs. The bill introduced by Senator Jeremy Miller, n=known as the Minnesota Bitcoin Act (SF 2661), aims to improve the region’s financial system. The bill proposes allowing Bitcoin to be used for state investments, retirement funds, and tax purposes. If approved, Minnesota could become one of the first states to fully embrace digital assets within its government operations.
Growing State-Level Crypto Adoption
Miller revealed taht initially he was skeptical to see Bitcoin as a long-term financial tool with growing mainstream adoption and stated that cryptocurrency offers multiple benefits, including serving as an investment, a global currency, and a hedge against inflation.
The Minnesota Bitcoin Act has had significant reforms in the financial field during its provisions. The bill would allow the Minnesota State Board of Investment (SBI) to invest state funds in Bitcoin and other cryptos. State employees would also be allowed to participate in a Bitcoin retirement plan, which is a new method of accumulation of wealth for workers. Also, people would pay state taxes and fees in BTC, making financial operations even more convenient for residents.
The various aspects of interest are also included, such as favorable tax legislation for crypto businesses. Capital gains made from Bitcoin and other digital currencies would be free from state taxes. Miller views it as a chance to secure innovation and development of economic growth within the region.
Several other US states are also captivated by the idea of adopting cryptocurrencies. The House Bill 4258 was also introduced recently in Texas and it seeks to implement investments in Bitcoin worth up to $250 million from the state’s economic stabilization fund.
Related: North Carolina Proposes 10% Bitcoin Treasury Investment
The authorities are working on a bill that would legalize the investment of New Hampshire in cryptocurrency. Moreover, it is also noteworthy that both Colorado and Utah have already adopted the ability to pay taxes using cryptocurrencies.
At the federal level, cryptocurrency policies are also emerging. Senator Cynthia Lummis of Wyoming has proposed the Strategic Bitcoin Reserve Act that could allow the U.S. to hold more than a million BTC. These actions suggest that there is a general evolution towards availing of digital currency in government expenses.
