Minnesota has introduced a cryptocurrency bill adding new investment options and tax exemptions.
Key Provisions of the Bill
The Minnesota cryptocurrency bill, first made public on March 14, proposes including cryptocurrency in the list of investment options for the State Board of Investment. It also allows the use of cryptocurrency as a form of payment and excludes certain cryptocurrency income from federal tax calculations. Changes would take effect on December 31, 2025, or January 1, 2026.
Cryptocurrency Regulation in Minnesota
Minnesota has revised its legislation to incorporate updates to the Uniform Commercial Code, but oversight of cryptocurrency remains limited. The Department of Commerce requires cryptocurrency exchanges to be registered as money transmitters. In 2024, a law was enacted protecting consumers using cryptocurrency kiosks (ATMs).
Political Stance of Minnesota Lawmakers
Although not a crypto hub, Minnesota is home to cryptocurrency proponent Tom Emmer, who serves as vice chair of the House Financial Services Committe Subcommittee on Digital Assets. Emmer has opposed the introduction of a central bank digital currency (CBDC) in the U.S., a stance supported by four of his seven colleagues in the House.
Minnesota is actively considering innovations in cryptocurrency legislation, offering significant changes for investors and taxpayers.
