Michigan has taken a step toward integrating cryptocurrency into state finances by proposing a bill to create a Bitcoin
$97,528.77
reserve.
On February 13, Representatives Bryan Posthumus and Ron Robinson introduced HB 4087, which seeks to amend the state’s Management and Budget Act.
If approved, it would allow the state treasurer to invest up to 10% of both the general fund and the economic stabilization fund in digital assets.
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With this proposal, Michigan becomes the 20th state to consider legislation related to crypto reserves. Posthumus expressed support for the bill, stating in a February 13 post on X:
Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve.
His comments came just a day after Texas Senator Charles Schwertner introduced a similar measure in his own state.
The Michigan bill includes a provision for lending cryptocurrency. It specifies that if digital assets can be loaned without increasing financial risk, the state treasurer would be allowed to do so to generate additional returns. However, it does not outline restrictions on which cryptocurrencies could be acquired for the reserve.
To ensure security, the proposal requires Michigan to hold its crypto through secure custody solutions or investment products offered by registered financial companies.
On January 21, Utah Representative Jordan Teuscher also proposed a bill known as HB 230. What does it entail? Read the full story.
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