Michigan Proposes Bill to Allocate 10% of State Funds to Crypto, Paving the Way for Digital Asset Adoption
Michigan is making strides in cryptocurrency legislation with the introduction of House Bill 4087, which aims to establish a state-backed crypto reserve. If passed, the bill would allow up to 10% of Michigan’s state funds to be allocated to digital assets, positioning the state as a leader in crypto adoption.
Key Highlights of the Michigan Crypto Bill
- State funds investment in crypto: The bill grants Michigan’s treasurer the authority to allocate up to 10% of state reserves into digital assets.
- Crypto lending provision: If deemed financially safe, the state could lend digital asset holdings to generate additional returns.
- Secure custody requirements: The bill mandates that Michigan’s crypto reserves be held in secured custody solutions or exchange-traded products (ETPs) from registered investment firms.
Representative Bryan Posthumus, who introduced the bill alongside Ron Robinson, emphasized Michigan’s potential to lead in crypto policy:
“Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve.”
This move follows a similar initiative in Texas, where Senator Charles Schwertner introduced a crypto investment bill just a day before Michigan’s proposal.
MichCoin: A State-Backed Stablecoin Tied to Gold and Silver?
Beyond establishing a crypto reserve, Posthumus has proposed the creation of ‘MichCoin’, a state-backed stablecoin pegged to Michigan’s gold and silver reserves. He argues that a gold- and silver-backed stablecoin would hold real value and help integrate blockchain technology into Michigan’s financial infrastructure.
“A stablecoin, which I believe the state of Michigan should create, would have real value—tied to our gold and silver reserves,” Posthumus stated.
The Growing Trend of Crypto Reserves Across U.S. States
Michigan’s move reflects a broader trend among U.S. states adopting cryptocurrency reserves. A recent analysis by VanEck identified 20 state-level Bitcoin reserve proposals, which, if implemented, could result in approximately $23 billion worth of Bitcoin purchases (about 242,700 BTC).
Several other states are also advancing crypto-related legislation:
- Texas has introduced a bill expanding its crypto investment and trading capabilities.
- North Carolina proposed legislation allowing the state treasurer to invest in digital assets.
- Arizona is moving forward with a bill permitting public funds to invest in Bitcoin, with the Senate Finance Committee already voting in favor.
With Michigan now becoming the 20th U.S. state to consider crypto adoption, its proposed bill could play a key role in shaping the future of state-backed digital asset investments.
