Michigan Legislation Aims to Transform Abandoned Oil Wells into Bitcoin Mining SitesWhile Promoting Crypto Investments in Retirement Funds

Michigan is transforming its approach to energy and finance by proposing legislation that repurposes abandoned oil wells into green crypto mining hubs.

• Michigan proposes crypto investments for state retirement funds via exchange-traded products.

• New bills promote Bitcoin mining, tax breaks, and ban support for a federal CBDC.

Michigan is pioneering crypto legislation aimed at integrating digital assets into public finance, potentially reshaping the state’s economic landscape.

Michigan pushes new crypto bill

Leading the charge is House Bill 4510, spearheaded by Rep. Bill Schuette, which proposes a notable amendment to the Public Employee Retirement System Investment Act. This pivotal legislation would empower Michigan’s state treasurer to invest retirement funds in cryptocurrencies, particularly those with an average market cap exceeding $250 billion over the past year, through exchange-traded products.

Providing more insights, the bill added, “Any digital asset held by this state in any of the previously listed funds must be held in the form of an exchange-traded product issued by a registered investment company.” This marks a significant step toward integrating crypto investments into state-funded retirement plans, illustrating Michigan’s commitment to embracing digital currencies.

Details of House Bill 4511

Expanding on Michigan’s crypto-forward stance, a second bipartisan bill, House Bill 4511, was introduced by Republican Representative Bryan Posthumus on the 21st of May. This legislation aims to safeguard the rights of crypto holders by barring the state from enforcing bans or imposing licensing requirements on digital asset ownership.

Notably, the bill also draws a line against federal intervention, prohibiting state officials from endorsing or supporting a Central Bank Digital Currency (CBDC). This includes any formal actions such as issuing memos or public statements that promote the testing, implementation, or adoption of a federally proposed CBDC, reinforcing Michigan’s push for digital financial sovereignty.

What’s more?

Furthermore, Representative Mike McFall has introduced two innovative bills, HB 4512 and HB 4513, that link Bitcoin [BTC] mining with environmental restoration and tax relief. The former bill initiates a “Bitcoin Program,” which incentivizes private companies to repurpose abandoned oil and gas wells for crypto mining by utilizing leftover fuel.

In return, participating firms receive short-term authorization to carry out Bitcoin mining operations. The second bill provides tax deductions on income and corporate earnings generated from these eco-friendly mining activities, aligning financial benefits with environmental responsibility.

If passed, the state’s Supervisor of Wells will oversee the program, maintain a public registry of eligible well sites, invite annual bids, and ensure miners take financial responsibility for site restoration. These legislative moves align with a national trend, as states like New Hampshire and Arizona build strategic Bitcoin reserves, an initiative echoed by President Trump’s executive order establishing a national Bitcoin reserve.

Conclusion

The introduction of these bills positions Michigan as a leader in the evolving landscape of cryptocurrency legislation. By integrating crypto investment into retirement funds and promoting eco-friendly Bitcoin mining, Michigan is setting a precedent for states across the nation. The broader implications of these moves could foster innovation and economic growth while addressing environmental concerns.