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Michigan has become the latest U.S. state to introduce a bill aimed at establishing a strategic Bitcoin reserve. The proposed legislation brings the total number of states pursuing similar crypto investment bills to 20.
Key Details of the Michigan Bitcoin Bill
- Bill Introduction: On Feb. 13, Representatives Bryan Posthumus and Ron Robinson introduced HB 4087 to amend the state’s Management and Budget Act to include Bitcoin reserves.
- Investment Cap: The bill would allow Michigan’s state treasurer to invest up to 10% of funds from the general fund and economic stabilization fund into crypto.
- Lending Provision: If lending crypto does not pose a financial risk, the state can lend it to generate additional returns.
- Storage Requirements: The state must hold crypto directly through secure custody solutions or exchange-traded products from registered investment firms.
- No Specific Crypto Guidelines: The bill does not outline which cryptocurrencies can be included in the reserve.
Michigan Joins a Growing Trend
- 20 States in Total: Michigan becomes the 20th U.S. state considering legislation for a state-run crypto reserve.
- Texas Leading the Way: Texas Senator Charles Schwertner introduced a similar bill on Feb. 12.
- State Pension Fund Exposure: Michigan’s state pension fund already holds Bitcoin and Ethereum through exchange-traded funds (ETFs).
MichCoin: A Potential State-Backed Cryptocurrency
- Posthumus’ Proposal: Representative Posthumus suggested launching “MichCoin”, a state-backed stablecoin.
- Gold and Silver Backing: He proposed tying MichCoin’s value to Michigan’s gold and silver reserves.
Other States’ Actions on Crypto Reserves
- Texas: Recently introduced a bill allowing state investment in crypto assets.
- North Dakota: The only state to reject legislation regarding crypto investments.
