Michigan Proposes Bitcoin Strategic Reserve: A New Era for Cryptocurrency Investment in State Funds

On February 14th, COINOTAG News reported, with input from Cointelegraph, that Michigan State Representatives Bryan Posthumus and Ron Robinson have introduced House Bill 4087. This legislation aims to modify the state’s Management and Budget Act to create a Bitcoin Strategic Reserve. If passed, the bill would authorize the state’s Treasury Department to allocate capital from the General Fund and the Economic Stability Fund into cryptocurrency investments, capped at 10%. Furthermore, it permits the custody of these digital assets through secure channels such as ETFs from registered investment firms. The legislation is designed to enhance state revenue streams through cryptocurrency lending, reflecting a broader trend as over 20 U.S. states explore similar initiatives. This move underscores the growing recognition of cryptocurrency as a viable asset class for government investment.