The Michigan Bitcoin reserve bill (House Bill 4087) moved to the Government Operations Committee after seven months, proposing the state treasurer may allocate up to 10% of general and stabilization funds into Bitcoin, with mandated custody controls, audits, and disaster‑recovery protocols.
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Bill progress: House Bill 4087 advanced to the Government Operations Committee after procedural clearance.
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Allocation cap: Authorizes up to 10% of general and stabilization funds for Bitcoin reserves.
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Security & oversight: Requires qualified custodians, exclusive state key control, audits, and penetration testing.
Michigan Bitcoin reserve bill: House Bill 4087 advances, allowing up to 10% of state funds for Bitcoin reserves—read the latest developments and implications.
What is the Michigan Bitcoin reserve bill (House Bill 4087)?
House Bill 4087 is legislation introduced in February that would allow the Michigan state treasurer to place up to 10% of the state’s general and stabilization funds into Bitcoin. The bill sets custody, auditing, and disaster recovery requirements to protect taxpayer assets.
How did the bill advance this week?
The bill cleared procedural steps, was placed on the House second reading calendar, and was formally referred to the Government Operations Committee after seven months of inactivity. This movement signals renewed legislative attention and a potential pathway to committee hearings.
Why do supporters argue for a state Bitcoin reserve?
Supporters say a state Bitcoin reserve can hedge against fiat devaluation and diversify state assets. Kadan Stadelmann, Chief Technology Officer at Komodo Platform, described the trend as “Hyperbitcoinization” spreading at the state level and urged municipalities to consider reserves to protect taxpayer money.
How would security and custody be handled under the bill?
The draft requires the use of a third‑party “secure custody solution” or “qualified custodian,” while the state retains exclusive control over private keys. Provisions also include regular audits, penetration testing, and disaster recovery protocols to mitigate custody risks.
When could this influence other states?
Observers say success in Michigan could pressure neighboring states such as Illinois, Ohio, and Pennsylvania to revisit stalled proposals. There are numerous pending Strategic Bitcoin Reserve bills nationwide, and recent federal activity includes a Treasury study directive on feasibility and governance.
Frequently Asked Questions
Will Michigan actually buy Bitcoin if the bill passes?
If enacted, the bill would empower the state treasurer to buy Bitcoin up to the 10% cap; purchases would depend on treasury decisions, market conditions, and compliance with custody and audit rules described in the legislation.
How will taxpayer funds be protected?
Protection measures include mandated use of qualified custodians, state control over private keys, regular audits, penetration testing, and disaster recovery plans to reduce theft, loss, or mismanagement risks.
What federal actions relate to state Bitcoin reserves?
Recently, the U.S. House advanced language directing the Treasury to study Strategic Bitcoin Reserves, focusing on custody, cybersecurity, and accounting standards—signaling growing federal interest in governing frameworks.
How can Michigan implement a secure state Bitcoin reserve?
Key Takeaways
- Legislative movement: House Bill 4087 is active again, moving to the Government Operations Committee for further review.
- Fiscal parameters: The bill proposes up to a 10% allocation from general and stabilization funds into Bitcoin.
- Security focus: The measure emphasizes qualified custodianship, exclusive state key control, audits, and disaster recovery to protect taxpayers.
Conclusion
The Michigan Bitcoin reserve bill, House Bill 4087, signals renewed momentum for state-level Bitcoin adoption and sets clear custody and audit expectations if enacted. Watch committee activity closely—successful passage could influence other states and shape emerging governance practices for strategic Bitcoin reserves.
