Michigan has recently made headlines in the world of cryptocurrency policy by proposing the creation of a strategic Bitcoin reserve, joining a growing list of US states considering similar initiatives. On February 13, Representatives Bryan Posthumus and Ron Robinson introduced HB 4087, a bill aimed at amending the state’s Management and Budget Act to allow for the establishment of a Bitcoin reserve using funds from Michigan’s general and economic stabilization accounts.
This move by Michigan reflects a broader trend across the country, where states are exploring crypto reserves as a means of diversification and long-term financial planning. With this proposal, Michigan becomes the twentieth state to consider such legislation, following in the footsteps of states like Texas.
Representative Posthumus, a vocal advocate for crypto adoption, expressed his enthusiasm for the bill on social media, citing the need for Michigan to lead on crypto policy initiatives. He highlighted the potential benefits of creating a Michigan Crypto Strategic Reserve and even floated the idea of a state-backed stablecoin called “MichCoin,” tied to the state’s gold and silver reserves.
Under the proposed legislation, Michigan’s treasurer would have the authority to allocate up to 10% of the state’s general and economic stabilization funds into cryptocurrencies. The bill also includes provisions for lending the state’s crypto holdings, as long as it does not increase financial risk, and mandates secure custody solutions for these investments.
Michigan’s interest in digital assets is not new, as the state’s pension fund already holds exposure to Bitcoin and Ethereum through exchange-traded funds. This proposed Bitcoin reserve and the potential creation of MichCoin could further solidify Michigan’s position as a forward-thinking jurisdiction in the realm of blockchain-based investments.
If enacted, Michigan’s bill could set a precedent for other states still considering crypto investment strategies. With twenty states already advancing similar legislation, Michigan’s potential adoption of a Bitcoin reserve could pave the way for further state-led crypto adoption initiatives nationwide.