- Minnesota and Alabama lawmakers have introduced companion bills that would allow their states to purchase Bitcoin.
- Minnesota’s bill would enable state investment in Bitcoin, exempt crypto gains from state income taxes, and allow tax payments in Bitcoin.
- 26 US states have introduced Bitcoin reserve bills, with Arizona closest to passing such legislation, while five states have rejected similar initiatives.
Lawmakers in Minnesota and Alabama have filed parallel bills that would authorize their state governments to purchase Bitcoin. On April 1, Republican Representative Bernie Perryman introduced the Minnesota Bitcoin Act (HF 2946) to the state’s House, following an identical bill presented by GOP state Senator Jeremy Miller on March 17. That same day in Alabama, Republican state Senator Will Barfoot and a bipartisan group led by Republican Mike Shaw submitted matching bills in their respective chambers.
The Minnesota Bitcoin Act would permit the state’s investment board to include Bitcoin and other cryptocurrencies in state assets. The legislation would also allow state employees to add crypto to retirement accounts, exempt cryptocurrency gains from state income taxes, and give residents options to pay state taxes and fees using Bitcoin.
Alabama’s Implicit Bitcoin Focus
While Alabama’s bills don’t specifically name Bitcoin, they effectively limit the state’s cryptocurrency investments to assets with a minimum market value of $750 billion—a threshold currently met only by Bitcoin. The introduction of identical bills in both chambers is a common legislative strategy aimed at accelerating the passage of laws through America’s bicameral system.
According to data from Bitcoin Laws, 26 US states have now introduced bills to create Bitcoin reserves. Arizona appears closest to enacting such legislation, while five states—Montana, North Dakota, Pennsylvania, South Dakota, and Wyoming—have already rejected similar initiatives.
Political Obstacles to Bitcoin Reserve Bills
Pennsylvania was among the first states to propose a Bitcoin reserve bill in November 2024, but the measure was ultimately rejected. According to a March 3 report by Barron’s, "red states" like Montana have encountered difficulties advancing Bitcoin reserve legislation amid partisan conflicts between Democrats and Republicans.
The growing movement for state-level Bitcoin reserves represents a significant trend in cryptocurrency adoption by government entities, despite mixed success across different states. If passed, these laws would mark historic steps toward institutional acceptance of digital assets as legitimate government investments.
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