Michigan Lawmaker Introduces Cryptocurrency Reserve Bill

Highlights:

• Michigan introduces HB 4087, aiming to establish a state crypto reserve. 
• The bill allows Michigan’s treasurer to allocate 10% of funds to cryptocurrencies.
• Twenty U.S. states propose Bitcoin reserves, potentially creating $23 billion in buying pressure.

On February 13, Michigan lawmakers Bryan Posthumus and Ron Robinson introduced HB 4087, aiming to amend Michigan’s Management and Budget Act to establish a state crypto reserve. The Michigan bill proposes allowing the state treasurer to allocate up to 10% of the general and economic stabilization funds into cryptocurrencies. However, it does not outline any restrictions or guidelines on which cryptocurrencies can be included in the reserve.

The bill also permits the state to lend cryptocurrency as long as it does not increase financial risk. It states that the treasurer is allowed to loan crypto to generate additional returns for the state.

In a post on X (formerly Twitter), Posthumus said, “Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve.” A day earlier, Texas Senator Charles Schwertner had introduced a similar proposal in the state Senate. Texa’s SB 21 allows investments in other digital assets but requires them to have maintained a market capitalization of at least $500 billion for the past year. At present, only Bitcoin meets this criterion.

Michigan’s push for crypto investments aligns with its growing exposure to digital assets. In a Nov. 4 SEC filing, Michigan’s state pension fund disclosed significant crypto exchange-traded funds (ETFs) holdings. Moreover, in a Feb. 13 post on X, Posthumus proposed the idea of “MichCoin,” a stablecoin he believes Michigan should create. He suggested that its value would be backed by the state’s gold and silver reserves.

So what is MichCoin?

– It’s a Stablecoin, which I believe the state of Michigan should create.

– It will have real value — tied to our gold and silver reserves.

– It could become the most powerful financial asset in our state’s history. pic.twitter.com/15n0H3Wy2x

— Rep. Bryan Posthumus (@posthumus_bryan) February 13, 2025

U.S. States Move Toward Bitcoin Reserves, Eyeing $23 Billion Investment

Michigan becomes the 20th U.S. state with pending legislation for state crypto investments. Utah is closest to securing one as its Bitcoin reserve bill heads to the Senate. On Feb. 6, Satoshi Action Fund CEO Dennis Porter confirmed the bill had passed the House. Meanwhile, North Dakota stands alone in rejecting crypto investment legislation.

🚨 NEW: MICHIGAN BITCOIN RESERVE BILL

House Bill 4087 would allow Michigan to invest 10% of public funds into "cryptocurrency"

The bill title is "Strategic Bitcoin Reserve" – but does not specify Bitcoin in the text. pic.twitter.com/iLbvoA3tc2

— Julian Fahrer (@Julian__Fahrer) February 13, 2025

VanEck Chief Matthew Sigel shared on X that 20 U.S. states have proposed Bitcoin reserve bills. If passed, states could invest heavily in Bitcoin, with an estimated $23 billion in buying pressure based on their financial commitments.

“This amount excludes pension fund investments,” Sigel noted, implying that buying pressure could rise if more states adopt similar bills. His analysis suggests that state-level Bitcoin demand could impact market liquidity and influence price movements.

We analyzed 20 state-level Bitcoin reserve bills.
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

— matthew sigel, recovering CFA (@matthew_sigel) February 12, 2025

States Push Bitcoin Reserves as Trump Explores National Crypto Stockpile

As states push Bitcoin reserve plans, the Trump administration is exploring a national crypto stockpile. A recent executive order formed a group to assess its feasibility. Details remain unclear, but rising state interest shows Bitcoin’s growing role in public funds. Meanwhile, Trump’s family project launched the Macro Strategy reserve to expand its crypto holdings. Experts say managing a Bitcoin reserve requires specialized knowledge. Some have raised concerns about the government’s ability to handle digital assets.