Recently, Michigan has made a noteworthy advancement in cryptocurrency policy by becoming the latest state in the US to propose the establishment of a Bitcoin reserve.
On February 13, Representatives Bryan Posthumus and Ron Robinson put forward HB 4087, a bill designed to amend the state’s Management and Budget Act. This proposed legislation would enable Michigan to create a Bitcoin reserve utilizing funds from the state’s general and economic stabilization accounts.
Michigan Joins the Expanding List of States Exploring Crypto Reserve Legislation
This initiative is part of a larger trend where states nationwide are considering crypto reserves as a strategy for diversification and long-term financial stability. With this move, Michigan becomes the twentieth state in the US to entertain similar legislation.
Representative Posthumus, a vocal proponent of cryptocurrency adoption, shared his excitement on Elon Musk’s platform X, urging Michigan to follow in the footsteps of states like Texas to spearhead crypto policy efforts.
Interestingly, the day before Michigan’s proposal, Texas Senator Charles Schwertner had introduced a similar bill in the Texas Senate.
Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve. https://t.co/x2Yke3uWTn
— Rep. Bryan Posthumus (@posthumus_bryan) February 13, 2025
Significant Provisions and Anticipated Effects
According to the proposed legislation, Michigan’s treasurer would be empowered to invest up to 10% of the state’s general and economic stabilization funds into cryptocurrencies.
The bill also details provisions for lending the state’s cryptocurrency assets, as long as such operations do not escalate financial risk. Furthermore, Michigan’s cryptocurrency investments would need to be securely managed through custody solutions or exchange-traded products from registered investment companies.
This initiative illustrates the growing acknowledgment among states of the strategic advantages that digital assets may provide. Michigan’s pension fund already has holdings in Bitcoin and Ethereum via exchange-traded funds, reflecting the state’s existing engagement with blockchain investments.
Alongside the proposed Bitcoin reserve, Representative Posthumus has introduced the concept of a state-backed stablecoin, referred to as “MichCoin.”
This envisioned digital currency would be linked to Michigan’s gold and silver reserves, presenting a way to utilize state assets within a blockchain framework.
So what is MichCoin?
– It’s a Stablecoin, which I believe the state of Michigan should create.
– It will have real value — tied to our gold and silver reserves.
– It could become the most powerful financial asset in our state’s history. pic.twitter.com/15n0H3Wy2x
— Rep. Bryan Posthumus (@posthumus_bryan) February 13, 2025
If this bill is passed, Michigan will align itself with other areas exploring or implementing cryptocurrency investment strategies. With twenty states currently pursuing similar legislative proposals, Michigan’s potential enactment of a Bitcoin reserve could set a noteworthy example for others that are still deliberating.
Featured image created with DALL-E, Chart from TradingView
