Michigan has introduced a strategic Bitcoin reserve bill, becoming the 20th state in the US to propose such legislation. On February 13, Representatives Bryan Posthumus and Ron Robinson introduced HB 4087, which seeks to amend the state’s Management and Budget Act to establish a Bitcoin reserve.
Michigan’s Bitcoin Reserve Bill
The Michigan bill would allow the state’s treasurer to invest up to 10% of funds from both the general fund and economic stabilization fund in cryptocurrencies. Notably, the bill does not specify which cryptocurrencies can be purchased for the reserve, offering broad flexibility. It also includes provisions for lending crypto assets to generate returns, as long as it does not increase financial risks for the state.
Additionally, the bill mandates that Michigan holds its crypto assets securely through custody solutions or exchange-traded products from registered investment firms.
Michigan’s state pension fund already has exposure to Bitcoin and Ether exchange-traded funds, reflecting the state’s growing interest in crypto investments.
Moreover, Posthumus proposed creating a state-backed stablecoin, “MichCoin,” that would be pegged to Michigan’s gold and silver reserves. Posthumus expressed his enthusiasm for Michigan joining Texas in taking a leadership role in crypto policy.
Texas had recently refiled a similar bill, now known as SB 21, which expands the scope of Bitcoin investment to include other cryptocurrencies.
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