The list of states showing support for cryptocurrencies continues to grow
Michigan lawmakers are considering the creation of a cryptocurrency reserve, joining a growing number of states exploring digital asset investments. A new bill, introduced by Representatives Bryan Posthumus and Ron Robinson, seeks to amend the state’s Management and Budget Act to allow the state treasury to invest in Bitcoin and other cryptocurrencies.
If approved, Michigan would become the 20th US state with legislation supporting state-backed crypto reserves. The bill outlines that up to 10% of funds from the general and economic stabilization funds could be allocated toward digital assets.
While it does not specify which cryptocurrencies could be purchased, it includes provisions for lending crypto as long as it does not increase financial risk. The goal is to generate returns through secure investment strategies.
Posthumus emphasized Michigan’s opportunity to take a leading role in cryptocurrency policy, referencing Texas, which recently introduced a similar bill. The legislation would require the state to hold digital assets through secure custody solutions or exchange-traded products. Michigan’s state pension fund already has exposure to Bitcoin and Ether through exchange-traded funds, signaling prior state interest in digital investments.
Beyond the reserve, Posthumus has also proposed the idea of “MichCoin,” a state-backed stablecoin tied to Michigan’s gold and silver reserves. While this concept is separate from the current bill, it suggests a broader interest in incorporating blockchain technology into state financial policy.
With other states like Texas moving forward with similar legislation, the debate over cryptocurrency’s role in government financial planning continues. While some states embrace digital assets, others, like North Dakota, have chosen to reject related bills. Michigan’s proposal will now face further discussion as lawmakers weigh the potential risks and benefits of integrating crypto into state reserves.
