Michigan Advances Bill To Build Crypto Reserve – Details

Michigan lawmakers moved a bill that would let the state hold crypto assets closer to a vote, advancing House Bill 4087 to a second reading in mid-September ￰0￱ to reports, the proposal would change the Michigan Management and Budget Act to create a strategic crypto reserve under the control of the state ￰1￱ Bill Allows Up To 10% Investment The measure would let the state treasurer place up to 10% of certain state funds into qualifying digital ￰2￱ funds named include the countercyclical budget and the economic stabilization ￰3￱ bill does not list a single currency by name; rather it sets rules that a digital asset must meet to ￰4￱ who back the bill say this gives the state a new tool to diversify holdings and hedge inflation risks.

NEW: Michigan Strategic Bitcoin Reserve bill has progressed for the first time since ￰5￱ 4087 been placed on the House second reading calendar, and referred to the Committee on ￰6￱ bill would allow 10% of state funds to be ￰7￱ — Bitcoin Laws (@Bitcoin_Laws) September 18, 2025 Security And Custody Rules The text would impose strict custody and security standards before any purchase is ￰8￱ have disclosed requirements such as exclusive government control of private keys, the use of state-regulated or bank custodians, and the option to invest through registered investment companies or exchange-traded ￰9￱ bill also calls for technical safeguards: end-to-end encryption, no access via smartphones, geographically split secure data centers, multiparty sign-offs for transactions, and regular security ￰10￱ Point To Diversification Supporters argue the rules reduce the main ￰11￱ say a careful, limited position could protect the state from dollar weakness while offering ￰12￱ who introduced the bill — Representatives Bryan Posthumus and Ron Robinson — first filed it in February 2025, and its movement after roughly seven months of little action surprised some ￰13￱ also note that a few other US states have considered or passed similar ￰14￱ From Critics And Trade Groups Not everyone is ￰15￱ Michigan Bitcoin Trade Council has argued the bill fails to set a market-cap floor, which could allow the state to buy smaller, less liquid tokens that swing wildly in ￰16￱ worry that even with custody rules, crypto’s sharp ups and downs could leave public dollars ￰17￱ questions remain too: who will manage key recovery, how audits will be handled, and how losses would be covered in a severe market ￰18￱ And Practical Risks Reports say the bill now sits with the Committee on Government Operations and could face close scrutiny in committee ￰19￱ passed, Michigan would join a small group of states that have moved to let public treasurers hold ￰20￱ image from Unsplash, chart from TradingView