The U.S. state joins 19 other states considering Bitcoin adoption, with the possibility of investing up to 10% of public funds.
On February 13, Michigan representatives Bryan Posthumus and Ron Robinson introduced a bill related to digital assets. The HB 4087 bill aims to amend the state’s Management and Budget Act to establish a strategic reserve of Bitcoin and other digital assets.
The proposal allows the state treasurer to invest up to 10% of both the general fund and the economic stabilization fund in cryptocurrencies. A distinctive aspect of the bill is the possibility of lending cryptocurrencies to generate additional returns for the state, provided this does not pose additional financial risks. The bill does not specify any limits or guidelines on which cryptocurrencies can be purchased for the reserve.
Representative Posthumus stated on X:
“Michigan can and should join Texas in leading cryptocurrency policy by passing my bill to create the Michigan Crypto Strategic Reserve.”
The bill stipulates that the state must hold cryptocurrencies directly through secure custody solutions or ETFs issued by registered investment companies. Notably, Michigan’s state pension fund already has exposure to spot Bitcoin and Ether ETFs.
With this move, Michigan becomes the 20th U.S. state considering legislation on digital asset reserves.
