Minnesota Introduces Bitcoin Bill to Allow State Investments and Crypto Tax Payments

Highlights:

• Minnesota proposes a bill to allow state investments and tax payments in Bitcoin and other cryptocurrencies.
• State employees in Minnesota may soon add Bitcoin to their retirement plans if the new bill becomes law.
• North Dakota passes a bill to limit crypto ATM transactions and require fraud warnings to protect users.

Minnesota State Senator Jeremy Miller has introduced the Minnesota Bitcoin Act, which aims to modernize the finances of the state. Miller drafted the bill after changing his position on the use of Bitcoin. He stated on March 18 that research and constituent feedback influenced his decision. The Minnesota Bitcoin Act, also known as SF2661, would allow the Minnesota State Board of Investment to allocate state assets to Bitcoin and other cryptocurrencies.

Minnesota senator proposes Bitcoin Act after going from skeptic to believer – Cointelegraph

Today Minnesota state Senator Jeremy Miller introduced a Minnesota Bitcoin Act, which allows the Minnesota State Board of Investment to invest state assets into Bitcoin

This makes… pic.twitter.com/iUCLqeqqfa

— CoinETL (@CoinETL) March 19, 2025

This bill would add digital assets to the board’s portfolio where they currently manage traditional investments. Miller noted that the legislation is designed to generate prosperity in Minnesota and to modernize the state’s financial policy.

Moreover, the bill aligns Minnesota with a growing list of U.S. states embracing cryptocurrency. According to Bitcoin Laws, 23 states have introduced bills creating Bitcoin reserves. Colorado and Utah are already accepting cryptocurrency as payment for taxes, while Louisiana is allowing crypto use for a variety of state services.

Minnesota Introduces Bill to Open New Financial Avenues

Under the Minnesota Bitcoin Act, state employees would be able to include BTC and other cryptocurrencies in their retirement plans. Such an addition also offers a new alternative to traditional assets. Moreover, the bill would enable Minnesota residents to choose to pay their state taxes and fees in Bitcoin, as other states have already done so.

In addition to payment flexibility, the bill also offers a tax incentive. Bitcoin and other crypto gains would be exempt from state income tax benefits to Minnesotans who use digital assets.

Under existing U.S. federal tax regulations, the state and local tax deduction allows for up to $10,000 paid to the state to be deducted, while amounts above that are subject to state and federal taxes. However, Minnesota’s proposed change aims to lower the tax burden for cryptocurrency gains.

In Texas, the state is ready to invest up to $250 million in Bitcoin and other cryptocurrencies through House Bill 4258. At the federal level, Senator Cynthia Lummis reintroduced the BITCOIN Act, which would allow the U.S. government to accumulate over one million Bitcoins as part of a new reserve system.

Crypto Regulation Tightens Amid Rising ATM Fraud Cases

While Minnesota advances its cryptocurrency policies, North Dakota is regulating crypto ATMs. The North Dakota Senate approved House Bill 1447 by a 45-to-1 vote on March 18. Crypto ATM operators will be licensed as money transmitters while daily limits across machines are capped at $2,000 under the bill. Operators are also required to post fraud warnings on kiosks and send quarterly reports with machine locations, transaction volumes, and operator information.

🏛️ North Dakota Senate Passes Bill to Regulate Crypto ATMs! 🏧🛡️

📝 North Dakota just approved a bill with a $2,000 daily transaction cap and mandatory fraud warnings for crypto ATMs! 🚨 Aimed at curbing scams, this bill requires licensing and blockchain analytics for operators.… pic.twitter.com/7fvUy6sZKl

— MrPersonalTrader (@MPersonalTrader) March 19, 2025

The bill was proposed after lawmakers received complaints of fraud. Representative Steve Swiontek, who sponsored the bill, noted that the lack of regulation made crypto ATMs a target for scammers. Similarly, Nebraska Governor Jim Pillen signed a comparable bill into law last week to enforce strict rules for crypto ATM operators.