Michigan Joins Growing List of States Moving Toward Crypto Reserves
Feb 14, 2025, 21:26 IST
Michigan has officially joined the cryptocurrency legislative race with the introduction of House Bill 4087, marking the state’s bid to establish a strategic crypto reserve. The bill, introduced by Representatives Bryan Posthumus and Ron Robinson on February 13, positions Michigan as the 20th state in the U.S. to propose crypto reserve-related legislation.
“Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve,” Posthumus stated on X.
His proposal follows a similar initiative from Texas Senator Charles Schwertner, who introduced a crypto investment bill to the Texas Senate on February 12.
Michigan has recently joined a growing number of U.S. states proposing legislation to establish strategic cryptocurrency reserves. On February 13, Representatives Bryan Posthumus and Ron Robinson introduced House Bill 4087, aiming to amend the state's Management and Budget Act to allow the state treasurer to invest up to 10% of Michigan's general and economic stabilization funds into cryptocurrencies like Bitcoin.
This move positions Michigan as the 20th state to consider such legislation, reflecting a broader trend of states exploring the integration of digital assets into their financial strategies. States including Texas, Ohio, and North Carolina are also considering similar bills.
In addition to direct investment, the proposed Michigan bill includes provisions that would allow the state treasurer to lend cryptocurrencies to generate additional returns, provided it does not increase financial risk to the state. The bill also mandates that any cryptocurrencies held must be secured through appropriate custody solutions or exchange-traded products from registered investment companies.
This legislative effort aligns with Michigan's ongoing interest in cryptocurrency investments. Previously, the State of Michigan Retirement System invested $6.6 million in the ARK 21Shares Bitcoin ETF, indicating a growing institutional acceptance of digital assets within the state.
If enacted, these state-level initiatives could collectively lead to significant investments in Bitcoin. Analysts estimate that if all proposed bills across 18 states are approved, it could result in over $23 billion being invested into Bitcoin, potentially purchasing around 247,000 bitcoins.
As of today, Bitcoin is trading at approximately $96,787, reflecting a slight increase from the previous close.
Michigan's proactive approach underscores a growing recognition of cryptocurrencies as viable assets for state investment portfolios, aiming to diversify holdings and potentially enhance financial returns.