HF2946

HF2946 (Legislative Session 94 (2025-2026))

Minnesota Bitcoin Act proposed, payments to the state by cryptocurrency allowed, State Board of Investment authorized to invest in cryptocurrency, and various tax provisions modified.

Related bill: SF2661

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to introduce the "Minnesota Bitcoin Act," which aims to integrate cryptocurrency into the state's financial and investment systems. This includes allowing the state of Minnesota to accept cryptocurrency payments and enabling the State Board of Investment to invest in cryptocurrency.

Main Provisions

Cryptocurrency Payments: The bill authorizes the state to accept payments in cryptocurrency for various state liabilities, such as taxes and fees.
Investment in Cryptocurrency: It permits the State Board of Investment to include cryptocurrency investments as part of their portfolio, marking a significant shift in the state’s investment strategy.
Tax Modifications: The bill proposes modifications to existing tax laws to accommodate the acceptance of cryptocurrency. This includes changes to tax liability calculations and reporting requirements for taxpayers using cryptocurrency.

Significant Changes to Existing Law

Amendment of Tax Laws: The bill introduces amendments to several sections of the Minnesota Statutes, including those related to taxation (e.g., sections 289A.02, 290.01, and others). These changes are intended to provide a framework for cryptocurrency transactions in relation to tax responsibilities.
Investment Strategy Expansion: By amending section 11A.24, subdivision 6, the bill allows the State Board of Investment to expand its investment strategy to include digital currencies.
New Legal Provisions: New subdivisions are added to existing laws to accommodate and regulate the use and acceptance of cryptocurrency within the state’s financial framework.

Relevant Terms

cryptocurrency, Bitcoin, digital currency, State Board of Investment, tax provisions, Minnesota Bitcoin Act, investment strategy, digital assets, payment acceptance, tax liability, reporting requirements.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 31, 2025	House	Floor	Action	Introduction and first reading, referred to	State Government Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [
        "Allows investment in cryptocurrency."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the investment authority of the State Board of Investment under section 11A.24.",
      "modified": [
        "Updates permissible investment categories."
      ]
    },
    "citation": "11A.24",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [
        "Includes option to pay taxes using cryptocurrency."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends tax payment options under section 276.05.",
      "modified": [
        ""
      ]
    },
    "citation": "276.05",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Defines cryptocurrency within the context of tax payments."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends definitions related to tax administration under section 289A.02.",
      "modified": [
        "Updates existing definitions to include digital assets."
      ]
    },
    "citation": "289A.02",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies income tax computation under section 290.033.",
      "modified": [
        "Adjusts income calculations to account for losses and gains in cryptocurrency."
      ]
    },
    "citation": "290.033",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies alternative minimum tax calculations under section 290.091.",
      "modified": [
        "Incorporates cryptocurrency transactions into tax base calculations."
      ]
    },
    "citation": "290.091",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies minimum fees for corporations under section 290.0921.",
      "modified": [
        "Amends calculation methods to include digital transactions."
      ]
    },
    "citation": "290.0921",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill addresses pension coverage for eligible employees under section 354B.25.",
      "modified": [
        "Clarifies contribution methods using cryptocurrency for certain payments."
      ]
    },
    "citation": "354B.25",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends fiduciary responsibilities under section 356A.06.",
      "modified": [
        "Introduces guidelines for managing cryptocurrency assets."
      ]
    },
    "citation": "356A.06",
    "subdivision": "subdivision 7"
  }
]