Michigan eyes crypto reserve with 10% investment cap proposal
Michigan has joined a growing number of U.S. states considering cryptocurrency investments with House Bill 4087, which proposes a strategic Bitcoin (CRYPTO:BTC) reserve.
Representatives Bryan Posthumus and Ron Robinson introduced the bill on February 13, aiming to amend the state's Management and Budget Act.
HB 4087 would allow the state treasurer to invest up to 10% of the general fund and economic stabilisation fund in cryptocurrencies.
The bill does not specify which cryptocurrencies can be purchased but allows for lending crypto to generate further returns, provided it doesn't increase financial risk.
The state would hold crypto through secure custody solutions or exchange-traded products from registered investment companies.
"Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve," Posthumus stated on X (formerly Twitter).
He also proposed "MichCoin," a stablecoin tied to the state's gold and silver reserves.
With Michigan's proposal, 20 states now have crypto reserve-related legislation pending a vote.
Texas recently filed similar legislation, while North Dakota is the only state to have rejected such a bill.
Investment manager VanEck estimates that if all proposed bills in 18 states were enacted, it could lead to over $23 billion invested in Bitcoin.
Matthew Sigel, head of digital-assets research at VanEck, described that number as "potentially conservative."
Michigan's state pension fund already has exposure to Bitcoin and Ether (CRYPTO:ETH) exchange-traded funds.
House Bill 4087 has been referred to the Committee on Communications and Technology.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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