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- Michigan introduced a bill to create a strategic Bitcoin reserve
- The bill allows the treasurer to allocate up to 10% of state funds to digital assets, including lending options.
- Michigan’s pension fund already holds Bitcoin ETFs
Michigan has introduced a bill to establish a strategic Bitcoin reserve, becoming the 20th U.S. state to consider crypto investments. Representatives Bryan Posthumus and Ron Robinson introduced HB 4087 on Feb. 13. The bill seeks to amend Michigan’s Management and Budget Act to allow the state treasurer to invest in Bitcoin. This move aligns Michigan with other states exploring crypto as a strategic asset.
State Treasurer’s Role in Crypto Investments
Under this bill, the Michigan treasurer can invest a specified amount of state funding into cryptocurrency. The treasurer maintains authority to allocate digital assets equivalent to 10% of general fund and economic stabilization fund resources. The state law fails to outline the specific cryptocurrency types it can purchase. The legislation establishes an investment system that strives to build diverse portfolio strategies.
A notable provision allows the state to lend its cryptocurrency holdings. The bill states that lending should not increase financial risk for Michigan. If structured properly, this could generate additional returns for the state. To ensure security, Michigan must hold its crypto in regulated custody solutions or exchange-traded products.
Michigan’s Existing Crypto Exposure
Michigan’s pension fund already has exposure to Bitcoin and Ether exchange-traded funds. This suggests the state is not new to digital asset investments. The proposed bill seeks to expand these investments beyond ETFs into direct crypto holdings.
Posthumus also proposed creating MichCoin, a stablecoin backed by Michigan’s gold and silver reserves. He believes a state-issued stablecoin would provide financial stability and innovation. While this idea remains separate from the Bitcoin reserve bill, it reflects growing interest in blockchain technology.
Crypto Legislation Across the U.S.
Michigan joins 19 other states in advancing crypto reserve-related bills. Texas recently proposed similar legislation, allowing the state to invest and trade crypto assets. North Carolina also introduced a bill for Bitcoin exchange-traded products. North Dakota remains the only state to reject such legislation.
As more states explore crypto investments, regulatory frameworks will continue evolving. Michigan’s bill could set a precedent for other states considering digital asset reserves. The coming months will determine whether Michigan officially adopts Bitcoin as part of its financial strategy.