Michigan Proposes Bitcoin Reserve Bill, 20 States Push for Legislation

The US state of Michigan has become the latest to come up with Bitcoin reserve bill, introduced on Thursday. This makes it the 20^th state to push for a strategic Bitcoin reserve legislation. which would allow the state treasurer to invest in the asset class.

House Bill 4087 was introduced by Representatives Bryan Posthumus and Ron Robinson. It allows Michigan treasurer to invest in cryptos from the general fund and economic stabilization fund, not greater than 10%.

"Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve," Rep. Posthumus wrote on X. He also said that this is an opportunity for the state to lead into the future.

Further, the legislation includes a section allowing Michigan treasurer to lend cryptocurrencies without increasing financial risk.

"The state treasurer is permitted to loan the cryptocurrency to yield further return to this state," the provision read.

Additionally, the bill noted that cryptos must be held directly by Michigan treasurer through a "secure custody solution" or an exchange-traded product issued by a registered investment firm.

Michigan Among 20 US States to Actively Consider Crypto Reserve Bill

The proposal makes Michigan the 20^th US state to consider a crypto-backed reserve. If the legislations are passed, they could "drive $23 billion in buying, or 247k BTC.

According to Matthew Sigel, head of digital asset research at VanEck US, 20 states including Ohio, Oklahoma, Wyoming, Texas, Utah, North Dakota, Kentucky and many have already introduced one or more Bitcoin reserve bills.

VanEck analyst Sigel predicted that the proposed bills would funnel state money into reserve funds and pension plans. Investments would range from $50 million to over $8.7 billion per state, depending on their cash commitment.

Some US states like Maryland has planned to buy Bitcoin using general state funds, while North Dakota and others are looking at donations and gifts.

Days after President Donald Trump's inauguration, he signed an executive order to evaluate whether the U.S. should establish a national stockpile of digital assets.

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