Michigan Lawmakers Propose Bitcoin Reserve Investment Plan for State Treasury
Recently, Michigan lawmakers introduced a new bill (HB 4087) intending to allow the state government to invest up to 10% of its funds in Bitcoin, while also allowing for secure cryptocurrency lending. If this succeeds, Bitcoin will have a place in Michigan's financial strategy.
On February 13, Michigan Representatives Bryan Posthumus and Ron Robinson officially presented this bill, aimed at amending the state budget act through Bitcoin investment, joining the ranks of 19 other states that are implementing or considering cryptocurrency investment policies, but it remains to be seen whether the bill will pass.
The new bill authorizes the Michigan State Treasurer to invest no more than 10% of the funds in cryptocurrencies, without specifying particular coins, only requiring that the state government must store these cryptocurrencies through secure custodial services. The bill also allows the state government to lend crypto assets to increase revenue, but it must ensure no additional financial risk.
In fact, Michigan's state pension fund has long been involved in cryptocurrency investments, holding exchange-traded funds of Bitcoin and Ethereum. According to documents submitted to the U.S. Securities and Exchange Commission (SEC) in November, the Michigan Retirement System reported that it holds 460,000 shares of Grayscale Ethereum Trust, as well as an equivalent amount of Ethereum Mini Trust shares.
Matthew Sigel from VanEck also mentioned that several states in the U.S. have proposed strategic Bitcoin reserve bills, which are expected to drive a Bitcoin purchase volume of $23 billion. This figure does not include allocations from pension funds, and if legislation progresses, this number may rise.
Currently, 20 states have proposed cryptocurrency reserve bills, with Arizona and Utah making faster progress. Texas has recently introduced a new Bitcoin investment bill, and states like Montana, Ohio, and Florida have similar legislation. However, North Dakota is the only state to reject this proposal.
In summary, if the HB 4087 bill passes, it will make Michigan part of the U.S. cryptocurrency investment landscape and enhance the role of Bitcoin in government finance.
Do you think the Bitcoin investment bill will become a new trend in state government investments?
