Michigan Introduces Bitcoin Reserve Bill, Joining 19 Other U.S. States

• Michigan’s HB 4087 proposes investing up to 10% of state funds in Bitcoin and other cryptocurrencies.
• The bill mandates secure custody solutions or exchange-traded products for state-held cryptocurrency reserves.
• Posthumus introduced “MichCoin,” a stablecoin concept backed by Michigan’s gold and silver reserves, though it is not in the bill.

Michigan has introduced a legislative proposal to establish a strategic Bitcoin reserve, becoming the latest U.S. state to consider cryptocurrency investments. Representatives Bryan Posthumus and Ron Robinson filed House Bill 4087 on February 13, aiming to amend the state’s Management and Budget Act. If passed, the bill would allow Michigan to allocate a portion of its general and economic stabilization funds to Bitcoin and other cryptocurrencies.

Michigan Becomes the 20th State to Consider Crypto Reserves

With this development, Michigan is now the 20th state in the U.S. with active legislation related to state-held cryptocurrency reserves. Posthumus emphasized the bill’s significance, stating that Michigan should follow Texas in shaping crypto policy. Texas Senator Charles Schwertner had introduced a similar measure on February 12, advancing the state’s position on digital asset reserves.

Under the proposed legislation, Michigan’s treasurer would have the authority to invest up to 10% of the state’s general and economic stabilization funds in cryptocurrencies. The bill does not define specific digital assets eligible for investment but includes a provision for crypto lending. According to the text, the treasurer may lend state-held cryptocurrencies if it does not increase financial risk, potentially generating additional returns.

Additionally, the bill mandates that any cryptocurrency holdings must be secured through institutional custody solutions or exchange-traded products from registered investment firms. This requirement aligns with regulatory concerns about asset security and compliance.

Existing Crypto Investments in Michigan

Michigan’s state pension fund already has exposure to cryptocurrency, holding positions in Bitcoin and Ethereum exchange-traded funds. This existing investment framework suggests a degree of institutional familiarity with digital assets, potentially influencing legislative decisions.

The introduction of “MichCoin” took place through social media where Posthumus proposed this stablecoin supported by Michigan’s metallic resource reserves. Although absent from the legislative bill the concept shows growing state interest in blockchain deployment for financial system management.
The introduction of Michigan’s bill follows legislative movements in multiple states, including Texas and North Carolina, which are also considering cryptocurrency investment frameworks. Meanwhile, North Dakota remains the only state to have rejected such legislation. As Michigan’s proposal progresses, it joins a growing list of states evaluating digital assets for public financial reserves.