Bitcoin Reserve Bills Gain Momentum

Lawmakers in Minnesota and Alabama have introduced companion bills that would allow their respective states to invest in Bitcoin. This move adds to the growing national trend of states exploring Bitcoin as a potential reserve asset.

Minnesota's Bitcoin Act

Representative Bernie Perryman (R) introduced Minnesota’s House File 2946, mirroring a Senate bill (SF 2946) put forth by Senator Jeremy Miller (R). This comprehensive act would allow the state’s investment board to allocate funds to Bitcoin and other cryptocurrencies, permit employees to include crypto in retirement plans, exempt crypto gains from state taxes, and allow for Bitcoin payments of state taxes and fees.

Alabama's Bitcoin-Focused Bills

In Alabama, Senator Will Barfoot (R) introduced Senate Bill 283, and a bipartisan group of representatives, led by Mike Shaw (R), filed House Bill 482. While not explicitly naming Bitcoin, these bills effectively limit state crypto investments to assets with a minimum market capitalization of $750 billion—a threshold currently only met by Bitcoin.

A National Trend

The introduction of identical bills in both chambers is a common legislative strategy to expedite the process. Across the US, 26 states have now introduced bills related to creating Bitcoin reserves. Arizona is currently considered the frontrunner in the race to enact such legislation. However, some states, including Pennsylvania, Montana, North Dakota, South Dakota, and Wyoming, have rejected similar initiatives.

The push for Bitcoin reserves reflects a growing interest among policymakers in exploring the potential benefits and risks of incorporating cryptocurrency into state finances. This is happening despite setbacks faced in some states, often amid political divides.

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