Michigan has joined the wave of U.S. states exploring cryptocurrency investments, with lawmakers introducing a bill to establish a strategic Bitcoin reserve. This move makes Michigan the 20th state to propose legislation related to crypto reserves.
Michigan’s Bitcoin Reserve Proposal
On February 13, Representatives Bryan Posthumus and Ron Robinson introduced HB 4087, a bill aimed at amending Michigan’s Management and Budget Act to allow the state treasurer to invest in Bitcoin and other cryptocurrencies. The proposal suggests allocating up to 10% of the general fund and economic stabilization fund to crypto investments.
The bill also includes provisions for lending crypto assets, stating that the state treasurer may loan cryptocurrencies if it doesn’t increase financial risk, potentially generating additional returns. However, there are no specific guidelines on which cryptocurrencies Michigan can purchase.
To ensure security, Michigan must hold its crypto assets directly through secure custody solutions or exchange-traded products from registered investment firms. The state’s pension fund already has exposure to Bitcoin and Ether ETFs.
“MichCoin” – A State-Backed Stablecoin?
In addition to pushing for a Bitcoin reserve, Posthumus floated the idea of “MichCoin,” a stablecoin backed by Michigan’s gold and silver reserves. He suggested that the state could create its own digital currency, though no formal legislation has been introduced for this initiative.
With Michigan’s proposal, 20 U.S. states now have active crypto reserve bills advancing beyond the House committee stage. Texas remains one of the most vocal states supporting crypto investments, while North Dakota is currently the only state to have rejected such legislation.
As more states consider incorporating Bitcoin and other digital assets into their financial strategies, the push for state-backed crypto reserves continues to gain momentum.
