- A new bill could allocate 10% of state funds to crypto, making Michigan a leader in digital asset adoption.
- Lawmakers suggest a state-backed stablecoin tied to gold and silver, aiming to strengthen Michigan’s financial system.
Michigan has officially joined the cryptocurrency legislative race with the introduction of House Bill 4087, marking the state’s bid to establish a strategic crypto reserve. The bill, introduced by Representatives Bryan Posthumus and Ron Robinson on February 13, positions Michigan as the 20th state in the U.S. to propose crypto reserve-related legislation.
“Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve,” Posthumus stated on X.
His proposal follows a similar initiative from Texas Senator Charles Schwertner, who introduced a crypto investment bill to the Texas Senate on February 12.
Michigan Crypto Reserve Bill: Key Provisions and Implications
The Bill 4087 proposes an amendment to the state’s management and budget act, and allows for Michigan’s treasurer to allocate up to 10% of state funds into digital assets. The bill does not specify which cryptocurrency the state may acquire.
Another significant aspect in the proposal is the provision allowing for cryptocurrency lending. The bill stipulates if the lending process does not mean a financial risk to the state, the treasurer is allowed to lend digital assets holdings to generate additional returns and funds.
Furthermore, to ensure state funds are secured, its crypto reserves must be held through secured custody solutions or exchange-traded products (ETPs) from registered investment companies.
Beyond the crypto reserve bill, Posthumus has floated the idea of “MichCoin,” a state-backed stablecoin tied to Michigan’s gold and silver reserves. “A stablecoin, which I believe the state of Michigan should create, would have real value—tied to our gold and silver reserves,” Posthumus stated in a post on X.
He emphasized that such a stablecoin could provide tangible value and further integrate blockchain technology into the state’s financial infrastructure.
Broader Crypto Legislation Trends Across the U.S.
Michigan’s move is part of a broader nationwide trend toward integrating Bitcoin into state reserves. Asset manager VanEck recently analyzed 20 state-level Bitcoin reserve bills, estimating that if these proposals materialize, they could drive approximately $23 billion in Bitcoin purchases—equivalent to about 242,700 BTC.
We analyzed 20 state-level Bitcoin reserve bills.
— matthew sigel, recovering CFA (@matthew_sigel) February 12, 2025
If enacted, they could drive $23 billion in buying, or 247k BTC.
This sum is independent of any pension fund allocations, likely to rise if legislators move forward. pic.twitter.com/5AZnkiwTZf
Other states are making strides in crypto-related legislation. Texas has recently filed a bill to expand its crypto investment and trading capabilities, while North Carolina introduced legislation to allow its state treasurer to invest in digital assets.
Michigan now makes it the 20th state in the US in line for crypto adoption, amongst others. The above chart shows the status of each state’s crypto reserve bill.
Arizona’s Senate Finance Committee has already voted in favor of a bill permitting public funds to invest in Bitcoin, moving the proposal closer to a House vote.
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