The Michigan Bitcoin reserve proposal (House Bill 4087) would authorize the state treasurer to invest up to 10% of general and stabilization funds in Bitcoin, establishing secure custody, audits, and disaster recovery protocols to safeguard taxpayer assets while expanding crypto adoption at the state level.
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House Bill 4087 allows up to 10% of state funds to be allocated to a Bitcoin reserve.
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Robust custody, periodic audits, penetration testing and disaster recovery are required to protect public funds.
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Over 26 states are actively examining strategic Bitcoin reserve proposals, raising national momentum.
Michigan Bitcoin reserve: House Bill 4087 would allow up to 10% of state funds in Bitcoin, with strict custody and audit rules — learn implications and next steps.
Michigan moves forward on a Bitcoin reserve bill allowing 10% of state funds, reflecting rising confidence and stronger crypto adoption.
- Michigan pushes House Bill 4087 to allow 10% of state funds in Bitcoin, showing growing confidence in crypto at the state level.
- Strong custody measures, audits, and disaster protocols ensure Michigan’s Bitcoin reserve would protect taxpayer funds effectively.
- Michigan’s move may inspire nearby states like Illinois, Ohio, and Pennsylvania to explore their own strategic Bitcoin reserves.
Michigan is moving closer to creating a state-run Bitcoin reserve as House Bill 4087 advances for the first time since February. The state treasurer might invest up to 10% of general and stabilization funds in Bitcoin under the bill, which was introduced earlier this year.
After overcoming procedural obstacles, lawmakers sent the bill to the Government Operations Committee, indicating a resurgence of the state’s cryptocurrency aspirations.
The bill is sponsored by Republican Representatives Bryan Posthumus and Ron Robinson. If passed, Michigan would join Texas, New Hampshire, and Arizona as one of the few U.S. states to officially hold a strategic Bitcoin reserve.
What is the Michigan Bitcoin reserve proposal?
The Michigan Bitcoin reserve proposal (House Bill 4087) authorizes the state treasurer to allocate up to 10% of specified state funds into Bitcoin under strict governance. The bill outlines custody requirements, auditing cycles, and disaster recovery measures to reduce fiscal risk to taxpayers.
How would House Bill 4087 let Michigan invest public funds in Bitcoin?
House Bill 4087 sets governance guardrails: the treasurer must use a qualified custodian or secure third‑party custody, retain exclusive control of keys, and require periodic audits and penetration testing. Financial controls aim to align the reserve with standard public fund safeguards.
Why do proponents say a state Bitcoin reserve is necessary?
Supporters argue a strategic Bitcoin reserve protects purchasing power against fiat devaluation and diversifies holdings. Experts cited in coverage, including Kadan Stadelmann (Chief Technology Officer, Komodo Platform), emphasize geopolitical and monetary trends pushing subnational entities toward crypto allocations.
How secure would Michigan’s reserve be?
Security depends on custody selection, audit rigor, and recovery planning. The bill requires:
- Qualified custodian or secure third-party custody
- Exclusive control measures for private keys
- Regular audits, penetration tests, and disaster recovery plans
These controls aim to replicate institutional best practices used by sovereign and corporate treasuries when holding digital assets.
What is the national context for strategic Bitcoin reserves?
Interest in strategic Bitcoin reserves is spreading: over 26 states are actively examining laws and roughly 47 states have submitted or considered related legislation, according to BitcoinLaws.io. At the federal level, an appropriations measure recently directed the Treasury Department to study governance, custody, and accounting standards for a Strategic Bitcoin Reserve.
Frequently Asked Questions
Can Michigan legally put public funds in Bitcoin under this bill?
Yes. If enacted, House Bill 4087 would authorize the treasurer to allocate up to 10% of specific state funds to Bitcoin, subject to the bill’s custody and governance requirements.
How quickly could a reserve be created after passage?
Implementation timing depends on rulemaking, procurement of custody services, and audit readiness. Establishing institutional custody and recovery plans typically takes several months.
Key Takeaways
- Authorized allocation: Michigan’s bill permits up to 10% of specified funds to be invested in Bitcoin.
- Strong guardrails: Custody, audits, penetration testing and disaster recovery are required to protect taxpayers.
- Regional momentum: The proposal may prompt neighboring states to evaluate similar strategic Bitcoin reserve options.
Conclusion
House Bill 4087 positions Michigan at the forefront of state-level strategic Bitcoin reserve proposals by allowing up to 10% of certain funds in Bitcoin while building institutional safeguards. As the bill advances, Michigan’s approach will be watched closely by other states and federal observers considering reserve governance and accounting standards.
