Michigan Joins Growing List of States Considering Crypto Reserve Bill

Michigan has recently taken a significant step in the realm of cryptocurrency policy, becoming the latest US state to propose the creation of a strategic Bitcoin reserve.

Michigan recently took a step into the world of cryptocurrency policy by proposing the creation of a strategic Bitcoin reserve. Representatives Bryan Posthumus and Ron Robinson introduced HB 4087 on February 13, a bill that would amend the state’s Management and Budget Act to permit the establishment of a Bitcoin reserve using funds from the state’s general and economic stabilization accounts.

This initiative is part of a broader trend in which states across the country are considering crypto reserves as a means of diversification and long-term financial planning. Michigan’s move brings the total number of US states with similar legislation to twenty.

Representative Posthumus, an outspoken advocate for crypto adoption, initially expressed his enthusiasm on Elon Musk’s social media platform X, encouraging Michigan to join states like Texas in leading crypto policy initiatives.

Curiously, Texas Senator Charles Schwertner had introduced a comparable bill to the Texas Senate just a day before Michigan’s proposal.

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

Key Provisions and Potential Impact

Under the proposed legislation, Michigan’s treasurer would have the authority to allocate up to 10% of the state’s general and economic stabilization funds into cryptocurrencies.

The bill also includes provisions for lending the state’s crypto holdings, provided such transactions do not increase financial risk. Additionally, Michigan’s crypto investments would be required to be held through secure custody solutions or exchange-traded products issued by registered investment companies.

Notably, this proposal reflects a growing recognition among states of the strategic value that digital assets might offer. Michigan’s state pension fund already holds exposure to Bitcoin and Ethereum through exchange-traded funds, signaling an existing interest in blockchain-based investments.

In addition to the proposed Bitcoin reserve, Representative Posthumus has floated the idea of a state-backed stablecoin, dubbed “MichCoin.”

This hypothetical digital currency would be tied to Michigan’s existing gold and silver reserves, offering an approach to leveraging state-held assets in a blockchain-based environment.

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 enacted, Michigan’s bill would align the state with other jurisdictions exploring or enacting crypto investment strategies. While twenty states now have similar legislation advancing through their legislatures, Michigan’s potential adoption of a Bitcoin reserve could set a precedent for others still on the fence.