Key Points
- Michigan lawmakers have introduced a bill that could allow the state to invest in Bitcoin and other cryptocurrencies.
- The bill, if passed, would allocate up to 10% of Michigan’s funds into crypto assets.
Michigan legislators Bryan Posthumus and Ron Robinson have proposed House Bill 4087, which could potentially make Michigan one of the pioneering states to officially invest in Bitcoin and other digital currencies. If the bill is passed, it would permit the state treasurer to allocate up to 10% of Michigan’s general and economic stabilization funds into crypto assets.
Posthumus, a strong proponent of pro-crypto policies, has highlighted Michigan’s potential leadership in the digital asset space. He suggested that the state should emulate Texas in pushing forward crypto-friendly legislation. He further stated, “Michigan should be leaders, not followers — especially when it comes to tech and manufacturing. They are our history and legacy to this nation.”
State-Level Crypto Adoption
In the same week, Texas lawmakers reintroduced SB 21, an updated version of their previous Bitcoin reserve bill. Unlike its predecessor, which solely focused on holding Bitcoin as a long-term asset, SB 21 broadens the state’s investment options to include other high-market-cap cryptocurrencies. It also gives Texas more flexibility in actively managing its crypto holdings.
Michigan’s bill also includes a provision that allows the state treasurer to lend out cryptocurrencies, a strategy aimed at generating additional revenue while mitigating risk.
Michigan’s interest in blockchain and crypto is not a recent development. In 2022, the state established a “blockchain and crypto commission” to explore opportunities within the sector. With House Bill 4087, Michigan takes a step further by proposing direct state investment in digital assets.
Bitcoin Reserves Across US States
Michigan’s proposal comes at a time when several other US states are moving toward incorporating Bitcoin into their financial strategies.
Utah remains at the forefront of state-level Bitcoin adoption, with its Bitcoin reserve bill already clearing the House. According to Satoshi Action Fund CEO Dennis Porter, Utah could become the first US state to formally implement a Bitcoin reserve, citing its strong political backing and an expedited legislative process.
At present, around 20 states, including Arizona, Illinois, Kentucky, Maryland, Ohio, and Pennsylvania, are considering similar Bitcoin reserve bills. The push for Bitcoin adoption at the state level has gained momentum, particularly since pro-crypto President Donald Trump assumed office in January.
National Crypto Policy
While individual states are moving forward with Bitcoin-related legislation, the federal government is also exploring the potential of digital asset reserves.
Shortly after taking office, President Trump signed an executive order directing a presidential working group to assess the feasibility of a national digital asset stockpile. Although the order does not immediately establish a Bitcoin reserve, it signals the federal government’s rising interest in crypto investment and regulation.
