Lawmakers in Minnesota and Alabama are pushing forward legislation allowing their states to invest in Bitcoin, joining a growing movement across the United States. On 1 April, Republican state leaders in both states introduced bills that, if enacted, would authorize the creation of Bitcoin reserves managed by state entities.
In Minnesota, the proposed legislation—formally titled the Minnesota Bitcoin Act—would enable the State Board of Investment to allocate funds into Bitcoin and other cryptocurrencies. The act, set to take effect on 1 January 2026, also permits residents to pay state taxes and fees using cryptocurrency. It further exempts cryptocurrency income from state taxation.
The bill, introduced in the House by Representative Bernie Perryman and mirrored in the Senate by Senator Jeremy Miller, outlines extensive provisions. These include definitions of cryptocurrency, integration into state financial systems, and amendments to tax laws. Cryptocurrency is a virtual currency that utilizes cryptography and distributed ledgers, such as blockchains, to secure transactions.
The act modifies numerous sections of Minnesota’s statutes, allowing Bitcoin payments for government services, property taxes, and delinquent tax settlements. Additionally, the state’s electronic payment systems would be upgraded to accept Bitcoin and convert it into U.S. currency through pre-approved third-party contracts. Convenience fees for crypto payments would apply, mirroring existing card transaction charges.
Alabama Limits Investment to Top Valued Assets
Simultaneously, Alabama introduced Senate Bill 283 and its identical counterpart, House Bill 482. The proposals allow the state treasurer to invest in digital assets, though they do not name Bitcoin directly. Instead, the bills limit investment to digital assets that are exchange-traded products or have maintained a market capitalization of at least $750 billion over the prior 12 months—a threshold met only by Bitcoin.
The Alabama bills require digital assets to be held via a secure custody solution, qualified custodian, or through approved exchange-traded products. Custody standards include multi-party governance, geographic data center redundancy, and strict encryption protocols. The treasurer would also be able to loan these assets to generate returns, provided risk levels do not increase.
If enacted, Alabama’s legislation will take effect on October 1, 2025. According to the bill tracking website Bitcoin Laws, 26 U.S. states have introduced similar Bitcoin reserve legislation. Arizona currently leads the effort, with a measure closest to being enacted. Other states—including Pennsylvania, Montana, North Dakota, South Dakota, and Wyoming—have introduced and subsequently rejected comparable bills.
Identical or companion bills, like those seen in Minnesota and Alabama, are common legislative tools used to accelerate the passage of new laws by navigating both chambers of state legislatures concurrently.
