Michigan Lawmakers Consider Investing Public Funds in Crypto
Michigan lawmakers have reignited a proposal that could potentially allow the state to invest public funds in cryptocurrency. The Management and Budget Act, also known as House Bill 4087, recently advanced to its second reading and was referred to the House Committee on Government Operations after months of legislative inactivity.
Introduced by Republican Representatives Bryan Posthumus and Ron Robinson, the bill aims to establish a “strategic crypto reserve” for the state. This reserve would enable the state treasurer to allocate up to 10% of funds from the general fund, countercyclical budget, and economic stabilization fund into digital assets as a means of hedging against financial downturns.
The proposed legislation outlines strict guidelines for managing the crypto reserve, including custody of assets through qualified custodians, secure storage providers, or exchange-traded products. It also allows for the lending of digital assets, provided that such actions do not pose any financial risk.
Although HB 4087 is still in the early stages of the legislative process, its resurgence signifies a renewed interest in digital asset policy at the state level. If the bill ultimately passes and receives the governor’s approval, Michigan would join Texas, Arizona, and New Hampshire as the fourth U.S. state to formally adopt a crypto reserve.
According to data from Bitcoin Reserve Laws, Michigan currently ranks sixth among states pursuing similar initiatives, indicating a growing trend of state-level Bitcoin legislation. These efforts align with federal developments, with the U.S. House of Representatives recently introducing a bill to assess the feasibility of a national strategic Bitcoin reserve and a broader digital asset stockpile.
In conclusion, Michigan’s consideration of investing public funds in cryptocurrency reflects a broader trend towards integrating digital assets into both state and federal economic policies. As the digital currency landscape continues to evolve, states like Michigan are exploring innovative strategies to leverage the potential of blockchain technology for financial security and stability.