Alabama and Minnesota Join States Pushing for Bitcoin Reserves
Lawmakers in Minnesota and Alabama have filed companion bills that would allow their states to invest in Bitcoin. These proposals join similar initiatives in 24 other states across the US, as part of a growing movement to create state Bitcoin reserves.
In Minnesota, Republican Representative Bernie Perryman introduced the Minnesota Bitcoin Act (HF 2946) to the state's House on April 1. This follows an identical bill introduced on March 17 by GOP state Senator Jeremy Miller.
The Minnesota Bitcoin Act would allow the state's investment board to put state assets into Bitcoin and other cryptocurrencies. It would also permit state employees to add crypto to retirement accounts, exempt crypto gains from state income taxes, and give residents the option to pay state taxes with Bitcoin.
In Alabama, Republican state Senator Will Barfoot introduced Senate Bill 283 on April 1, while a bi-partisan group led by Republican Mike Shaw filed the identical House Bill 482. The Alabama bills don't specifically name Bitcoin but limit state crypto investments to assets with a minimum market value of $750 billion – a threshold only Bitcoin currently meets.
The introduction of identical bills in both chambers is a common legislative strategy to accelerate the process. This approach allows laws to move through both houses simultaneously rather than sequentially.
These state initiatives follow President Trump's March 6 executive order establishing a US Strategic Bitcoin Reserve. The order recognized Bitcoin's fixed supply as providing a "strategic advantage" to early-adopting nations, potentially influencing state-level decisions to pursue similar reserves.
According to data from bill tracking website Bitcoin Laws, 26 US states have now introduced Bitcoin reserve bills. Arizona is currently closest to passing such legislation. The movement has faced challenges in some states:
- Pennsylvania (introduced November 2024, later rejected)
- Montana (bill killed)
- North Dakota (bill killed)
- South Dakota (bill killed)
- Wyoming (bill killed)
A March 3 report by Barron's noted that "red states" like Montana have faced setbacks to Bitcoin reserve initiatives amid political confrontations between Democrats and Republicans. As of today, Bitcoin is trading at approximately $81,983.
