US State of Michigan Proposes Bitcoin Reserve Bill

Michigan state representatives Bryan Posthumus and Ron Robinson have introduced House Bill 4087, which, if passed, would allow the state to invest in cryptocurrencies such as Bitcoin.

This initiative aligns with a growing trend among US states that are exploring the incorporation of cryptocurrencies into their financial strategies.

House Bill 4087 is designed to broaden the investment options for Michigan’s state funds by including cryptocurrencies, thereby potentially enhancing returns. The bill suggests that Michigan’s treasurer could invest up to 10% of the state’s “general” and “economic stabilization” funds in cryptocurrencies.

Additionally, the bill includes a provision that would allow the state treasurer to loan cryptocurrencies, aiming to generate extra returns without increasing financial risk.

Michigan has previously demonstrated interest in the cryptocurrency sector by establishing a “blockchain and crypto commission” in 2022 to promote the industry’s growth within the state.