| Key Points: – The Minnesota Bitcoin Act proposes integrating cryptocurrency into state investments, payments, and tax policies. – The Kentucky Senate also unanimously passed a bill securing Bitcoin self-custody rights and digital asset mining. |
Minnesota has become the latest U.S. state to consider cryptocurrency-related legislation, with the introduction of the Minnesota Bitcoin Act.
Despite its name, the bill broadly refers to “Bitcoin and other cryptocurrencies.” The legislation, made public on March 14 but dated March 17, proposes integrating digital assets into various state financial operations.
Minnesota Bitcoin Act Aims to Expand State Cryptocurrency Use
Under the Minnesota Bitcoin Act, cryptocurrency would be included in the investment options available to the State Board of Investment. It would also be recognized as a valid form of payment for state transactions.
Additionally, the bill outlines tax incentives, allowing cryptocurrency received to be deducted from federal adjusted gross income and excluding certain crypto gains from specific tax calculations.
Republican State Senator Jeremy Miller is set to introduce the Minnesota Bitcoin Act in the Minnesota Senate, where it will be reviewed by the State and Local Government Committee. If enacted, the proposed changes would take effect on December 31, 2025, or January 1, 2026.
Minnesota currently has limited regulatory oversight of cryptocurrencies beyond its adherence to the Uniform Commercial Code. The state mandates cryptocurrency exchanges to register as money transmitters and has consumer protections in place for cryptocurrency kiosks, which were enacted in 2024.
Trump Administration Moves Forward with National Bitcoin Reserve
Meanwhile, Kentucky has taken a decisive step in supporting digital asset rights. The Kentucky Senate unanimously passed a bill aimed at safeguarding Bitcoin self-custody rights and digital asset mining operations.
The legislation, known as AN ACT Relating to Blockchain Digital Assets (HB 701), cleared the Senate with a 37-0 vote on March 13 and now awaits the governor’s approval. It previously passed the Kentucky House with a 91-0 vote on February 28, demonstrating strong bipartisan support.
On a national level, discussions around a U.S. Bitcoin reserve have intensified following President Donald Trump’s recent executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile.
The initiative, which will be funded by digital assets forfeited in criminal or civil cases, aligns with Trump’s campaign pledge to leverage the federal government’s 200,000 seized Bitcoins for a strategic national stockpile.
The idea gained momentum last year when Wyoming Congresswoman Cynthia Lummis introduced a Senate bill proposing the federal purchase of 1 million Bitcoins over five years.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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