In Michigan, a previously shelved idea is back on the table: investing state funds in cryptocurrencies.
House Bill 4087, officially the Management and Budget Act, experienced renewed movement on September 18th. It was moved to its second reading and subsequently assigned to the House Committee on Government Operations, marking the end of a seven-month period of inactivity in the legislature. View Bill Details
Introduced by Republican Representatives Bryan Posthumus and Ron Robinson, the bill proposes establishing what they term a “strategic crypto reserve.”
The proposed legislation would grant the state treasurer the authority to allocate up to 10% of funds sourced from the state’s general fund, the countercyclical budget, and the economic stabilization fund into various digital assets.
Proponents of the bill argue that this measure would furnish Michigan with another method for safeguarding against potential economic downturns.
The bill also lays out specific guidelines for how this proposed reserve would be managed.
The treasurer could utilize qualified custodians, secure storage solutions, or exchange-traded products to hold the cryptocurrency. Furthermore, the bill permits the lending of these digital assets, conditional on such activities posing minimal financial risk.
While HB 4087 remains in the early stages of the legislative process, its revival is significant. Having stalled in February 2025, many within the industry assumed the initiative had lost traction.
However, by advancing the bill, Michigan lawmakers appear to be signaling a renewed dedication to advancing digital asset policies at the state level.
Should the measure ultimately pass through the legislature and be signed into law by the governor, Michigan would join Texas, Arizona, and New Hampshire as the fourth US state to formally establish a crypto reserve.
Statistics compiled by Bitcoin Reserve Laws indicate that Michigan is now ranked sixth among states pursuing similar initiatives, illustrating the increasing adoption of Bitcoin-related legislation at the state level.
These state-level efforts are happening concurrently with developments at the national level, where the administration, currently led by Donald Trump, is making considerable progress in integrating cryptocurrency into the broader economy.
Earlier this month, the U.S. House of Representatives introduced legislation compelling the Treasury Department to assess the viability of creating a national strategic Bitcoin reserve, as well as a more extensive stockpile of diverse digital assets.