Michigan Proposes to Establish a Bitcoin Reserve

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A proposal for establishing a strategic crypto reserve has been put forward in Michigan, making it the 20th state to consider a reserve backed by digital currency.

Introduced by Representatives Bryan Posthumus and Ron Robinson on February 13, House Bill 4087 suggests allowing the state treasurer to invest up to 10% of the state’s general and economic stabilization funds in cryptocurrencies.

According to the bill, the state treasurer would oversee the direct holding and management of crypto investments using methods such as a “secure custody solution,” a “qualified custodian,” or an “exchange-traded product” from a regulated investment company.

The bill also permits crypto lending, stating that the treasurer can loan the cryptocurrency to generate additional returns, provided it does not “increase the financial risk to this state.”