On February 13, a new bill (HB 4087) was introduced in Michigan, paving the way for the state’s first Bitcoin investment plan. Representatives Bryan Posthumus and Ron Robinson introduced the bill to modernize the state’s financial laws and incorporate cryptocurrencies into its investment strategy. This step is a significant milestone, as Michigan now joins a growing number of U.S. states that are legally addressing the handling of digital assets. Details of the Bill The bill allows Michigan’s Treasurer to invest public funds in cryptocurrencies, utilizing both the general fund and the Economic Stabilization Fund. However, the total investment in digital currencies cannot exceed 10% of the total fund value. Notably, the bill does not impose specific restrictions on the selection of
Topics:
Christian Mäder considers the following as important: Arizona, Bill, Bitcoin investments, Bitcoin reserves, Crypto Assets, Cryptocurrencies, Digital Assets, Digital Currencies, economic stabilization fund, financial strategy, general fund, Grayscale Ethereum Trust, investment plan, legislative initiatives, Michigan, Pension Fund, pension fund investments, secure custody, state finances, Texas, treasurer, U.S. states, VanEck
This could be interesting, too:
Emily John writes Georgia Introduces Another Bill to Invest in Bitcoin
Christian Mäder writes SEC Establishes New Cyber and Emerging Technologies Unit (CETU)
Wayne Jones writes VanEck Claims Bitcoin Reserves Could Offset T US Debt by 2049
Bitcoin Schweiz News writes FTX-Rückzahlungen starten: 16 Milliarden USD für Gläubiger – wer profitiert wirklich?
On February 13, a new bill (HB 4087) was introduced in Michigan, paving the way for the state’s first Bitcoin investment plan. Representatives Bryan Posthumus and Ron Robinson introduced the bill to modernize the state’s financial laws and incorporate cryptocurrencies into its investment strategy. This step is a significant milestone, as Michigan now joins a growing number of U.S. states that are legally addressing the handling of digital assets.
Details of the Bill
The bill allows Michigan’s Treasurer to invest public funds in cryptocurrencies, utilizing both the general fund and the Economic Stabilization Fund. However, the total investment in digital currencies cannot exceed 10% of the total fund value. Notably, the bill does not impose specific restrictions on the selection of cryptocurrencies, meaning that Bitcoin, as well as other digital currencies, could potentially be included in the state’s portfolio.
Additionally, the bill allows the state to lend its crypto-assets, which could generate additional income, as long as no financial risks are posed to the state. To ensure the safety of these investments, the cryptocurrencies must be stored through trusted custodial services or invested in regulated exchange-traded products.
The Bill’s Impact on the State of Michigan
The bill has the potential to significantly impact Michigan’s financial landscape. The state already has experience with cryptocurrencies, particularly through its pension fund, which holds shares in Bitcoin and Ether funds. This initiative could not only position the state to benefit from the growth of digital currencies but also create new revenue opportunities for Michigan, especially if the crypto markets continue to expand.
A Look at Other States
Michigan is joining a growing number of U.S. states that view cryptocurrencies as a potential component of their financial strategies. Already, 19 other states have introduced similar proposals for crypto-investments or are considering such legislative initiatives. States like Texas have already passed concrete laws opening the way for strategic Bitcoin reserves, while Arizona and Utah are considered pioneers in this area.
According to Matthew Sigel of VanEck, the bill could potentially trigger billions in Bitcoin investments, with multiple states collectively looking to purchase up to $23 billion worth of Bitcoin. Notably, these figures could rise further as more states move forward with similar legislative proposals:
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
Conclusion
The Bitcoin investment plan in Michigan clearly demonstrates that cryptocurrencies are increasingly being considered a long-term component of state financial strategies. By introducing such a bill, Michigan could not only benefit from the potential profits of crypto-investments but also position itself as a leader in the realm of digital currencies.
MICHIGAN – ON THE MAP! https://t.co/kRHzPbpQc6 pic.twitter.com/13PPmcANS7
— Bitcoin Laws (@Bitcoin_Laws) February 13, 2025
West Virgina:
WEST VIRGINIA – ON THE MAP! https://t.co/gMjhaoJel1 pic.twitter.com/fOUiitMdrP
— Bitcoin Laws (@Bitcoin_Laws) February 14, 2025
Georgia:
GEORGIA – ON THE MAP! https://t.co/uXfUullxh9 pic.twitter.com/Z46iydQyW0
— Bitcoin Laws (@Bitcoin_Laws) February 14, 2025
The map of U.S. states is slowly but surely turning orange:
By popular demand: ‚SBR‘ view by default.
Click the toggle to view all Bitcoin bills nationwide! https://t.co/4KnyXyqv0z pic.twitter.com/HwVPPyLv8a
— Bitcoin Laws (@Bitcoin_Laws) February 4, 2025