Michigan Legislature Introduces Four New Cryptocurrency Bills
The Michigan legislature has been making significant strides in defining the state’s approach to cryptocurrency with the introduction of four new proposed legislations this week. These bills cover a range of important issues related to digital assets, mining, tax exemptions, and restrictions on Central Bank Digital Currency (CBDC) support.
House Bill 4510, introduced by Representative Bill Schuette, aims to amend Michigan’s Public Employee Retirement System Investment Act to allow the state treasurer to invest in cryptocurrencies. The bill sets criteria for eligibility, requiring digital assets to have an average market capitalization of at least $250 billion over the past calendar year. Currently, only Bitcoin (BTC) and Ether (ETH) meet this threshold, and investments must be made through exchange-traded products issued by a registered investment company.
House Bill 4511, sponsored by Representative Bryan Posthumus, seeks to prohibit the state and its subdivisions from imposing restrictions on the holding of digital assets or implementing discriminatory tax requirements based solely on digital asset usage. The bill also prevents state agencies from endorsing or supporting any federal CBDC and protects blockchain participants from civil liability.
On the mining front, House Bill 4512, introduced by a bipartisan group led by Representative Mike McFall, outlines a Bitcoin mining partnership program targeting abandoned oil and gas wells. Participants in the program would receive temporary rights to use the wells for energy generation in exchange for assuming responsibility for plugging, site restoration, and response activity. The bill establishes a competitive bidding process and requirements for financial assurances, environmental compliance, and annual reporting.
McFall also introduced House Bill 4513, which proposes amending Michigan’s Income Tax Act to exempt income earned through the Bitcoin mining program from state income tax. The bill aligns the scope of exempt income with the program framework established under HB 4512, providing clarity for individual and corporate taxpayers participating in the initiative.
In addition to these four bills, Michigan is considering the creation of a strategic cryptocurrency reserve. House Bill 4087, introduced earlier this year, would authorize the state treasurer to allocate up to 10% of the general fund and Budget Stabilization Fund for crypto investments.
These legislative initiatives demonstrate Michigan’s commitment to embracing and regulating the growing cryptocurrency industry. By addressing key issues such as investment regulations, mining partnerships, tax exemptions, and CBDC restrictions, the state is positioning itself as a leader in the digital asset space.