Michigan has recently taken a major step into the cryptocurrency field, becoming the latest US state to propose the creation of a strategic Bitcoin Reserve.
On February 13, representatives of Bryan Poshumus and Ron Robinson introduced HB 4087, a bill aimed at amending the state's management and budget laws. This proposed law allows Michigan to establish Bitcoin Reserve using funds from the state's general and economic stabilization accounts.
Michigan is joining the list of growing states considering the crypto-preparation bill
The initiative is part of a broader trend that states across the country are considering crypto preparation as a tool for diversification and long-term financial planning. Michigan's move will bring the total number of US states with similar laws to 20.
Representative Posthumus, an outspoken advocate for Crypto adoption, first expressed his enthusiasm for Elon Musk's social media platform X, encouraging Michigan to join states like Texas with the Crypto policy initiative.
Interestingly, Texas Senator Charles Schwartner introduced a comparable bill in the Texas Senate a day before Michigan's proposal.
Michigan can join Texas to lead crypto policy by signing my bill to create a crypto strategic reserve for Michigan. https://t.co/x2yke3uwtn
– Rep. Brian Posmus (@posthumus_bryan) February 13, 2025
Key regulations and potential impacts
Under the proposed law, Michigan treasurers will have the authority to allocate up to 10% of the state's general and economic stabilization funds to cryptocurrencies.
The bill also includes provisions for lending state crypto holdings, provided that such transactions do not increase financial risk. Additionally, Michigan crypto investments must be held through secure custody solutions or exchange trade products issued by registered investment companies.
In particular, the proposal reflects the growing awareness of interstates of the strategic value that digital assets may offer. Michigan's state pension funds retain exposure to Bitcoin and Ethereum through funds already traded on exchanges, demonstrating existing interest in blockchain-based investments.
In addition to the proposed Bitcoin Reserve, Posthumus representative came up with the idea of a state-backed Stablecoin called “Michcoin.”
This hypothetical digital currency is linked to Michigan's existing gold and silver reserves, providing an approach to leveraging state-owned assets in a blockchain-based environment.
So, what is Michcoin?
– It's a stubcoin and I think Michigan should make it.
– It has 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. Brian Posmus (@posthumus_bryan) February 13, 2025
When enacted, Michigan bills either line up the nation with other jurisdictions or investigate or enact crypto investment strategies. Currently, 20 states are moving forward with similar laws through legislatures, but the potential adoption of Michigan's Bitcoin Reserve could set precedents for others still on the fence .
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