Michigan is making strides in the realm of cryptocurrency legislation with the introduction of four new bills in the state House. This initiative represents a significant shift toward integrating digital assets into public finance, particularly in relation to state retirement funds, Bitcoin mining, and the regulation of Central Bank Digital Currencies (CBDCs). Among the proposed bills, House Bill 4510, led by Representative Bill Schuette, seeks to amend the Public Employee Retirement System Investment Act. This bill would allow the Michigan state treasurer to invest retirement funds in cryptocurrencies that maintain an average market cap exceeding $250 billion over the previous year, specifically through exchange-traded products.
Importantly, any digital asset owned by the state must be in the form of exchange-traded products issued by registered investment companies. Additionally, House Bill 4511, introduced by Representative Bryan Posthumus, aims to protect the rights of cryptocurrency holders. This bipartisan bill would prevent the state from imposing bans or licensing requirements on digital asset ownership. It also takes a firm stance against federal overreach by prohibiting state officials from endorsing or supporting a CBDC, thereby reinforcing Michigan’s commitment to financial sovereignty.
Complementing these efforts, Representatives Mike McFall has introduced two bills—HB 4512 and HB 4513—that connect Bitcoin mining with environmental initiatives. The first bill establishes a “Bitcoin Program” that encourages private companies to convert abandoned oil and gas wells for crypto mining, utilizing leftover fuel. In exchange, these firms would receive temporary authorization for mining operations. The second bill aims to provide tax deductions on income and corporate earnings derived from these environmentally friendly mining activities.
These legislative efforts mirror a growing trend in the U.S., with several states exploring strategies to bolster Bitcoin reserves and improve local economies through innovative policies.