Bitcoin and michigan two flags on flagpoles and blue sky.

Key Takeaways:

Michigan’s Crypto Bill: Lawmakers introduced HB 4087, proposing a state-held Bitcoin reserve and allowing up to 10% of state funds to be invested in crypto.
Lending & Custody Rules: The bill permits crypto lending for returns and mandates secure custody via regulated entities.
Growing National Trend: Michigan joins 20 other states considering crypto reserve legislation, following Texas’ recent proposal.

Michigan has joined a growing list of U.S. states considering cryptocurrency reserve legislation, introducing a bill that could allow the state to invest in Bitcoin (BTC).

The proposed bill, HB 4087, was introduced on Feb. 13 by Representatives Bryan Posthumus and Ron Robinson.

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

If enacted, it would amend Michigan’s Management and Budget Act, permitting up to 10% of funds from the state’s general and economic stabilization funds to be allocated to cryptocurrency.

The bill does not specify which cryptocurrencies may be included but emphasizes Michigan’s role in shaping crypto policy.

Posthumus highlighted Michigan’s potential leadership in this sector, drawing parallels to Texas, which recently introduced a similar proposal.

A unique feature of Michigan’s bill is a provision allowing the state to lend out its crypto holdings to generate additional returns, provided it does not heighten financial risk.

🇺🇸 MICHIGAN JUST INTRODUCED A BILL FOR STRATEGIC #BITCOIN RESERVE

IT’S SPREADING LIKE WILDFIRE!!! 🚀 pic.twitter.com/ko0PYEaI6S
— Vivek⚡️ (@Vivek4real_) February 13, 2025

Secure custody of assets is also mandated, requiring storage through qualified custodians, secure custody solutions, or registered investment firms.

Michigan’s pension fund already has exposure to Bitcoin and Ethereum ETFs, reflecting some institutional involvement in digital assets.

With this initiative, Michigan joins 20 states in advancing crypto reserve legislation, while North Dakota remains the only state to reject such measures.