The idea of a Bitcoin reserve isn’t fading away for some U.S. states. Michigan, for one, is dusting off an old proposal. House Bill 4087, which aims to create the Michigan Strategic Bitcoin Reserve, just moved ahead. It had been sitting untouched for seven months. Now, the bill has passed to a second reading in the state House. It was then sent to the Committee on Government Operations, as reported by Bitcoin Laws on X.
Michigan Representatives Bryan Posthumus and Ron Robinson first introduced this bill back in February. They want to update the state’s Management and Budget Act. This change would allow Michigan to diversify its investment options. Adding Bitcoin to the state’s money mix could potentially boost returns. The bill would let the state treasurer invest up to 10% of certain funds. This includes money from the general fund, the counter-cyclical budget, and the economic stabilization fund. They could put these into Bitcoin and possibly other cryptocurrencies.
House Bill 4087 provides clear rules for setting up a strategic Bitcoin reserve. It defines Bitcoin as a digital currency that operates without a central bank. The state treasurer could hold these digital assets in secure ways. This includes using secure custody solutions, trusted custodians, or products traded on exchanges. The main condition is that these methods must not increase financial risk. The bill also details what secure custody means. It lists exclusive control of private cryptographic keys, encrypted settings, and data centers spread out geographically. Multi-party governance and regular security checks are also required. Any taxes or fees collected in cryptocurrencies must go into the general fund. Other funds would be reimbursed as needed.
Three U.S. States Already Have Bitcoin Reserve Laws
Michigan’s move comes during a broader national discussion. Earlier this year, over a dozen U.S. states considered holding Bitcoin as a state reserve asset. This push aligns with Donald Trump’s call for a federal reserve. As part of that presidential order, the U.S. Treasury Department is meant to study a federal Bitcoin reserve. They must look into how it would work and be managed, covering custody, cybersecurity, and accounting standards.
While many initial state-level efforts stalled, some did move forward. Plans in Florida, Oklahoma, and North Carolina, for instance, did not progress. However, three states made significant strides. Texas, New Hampshire, and Arizona made history this year. They became the first U.S. places to enact laws for a Bitcoin reserve. Texas, for example, set aside $10 million in cash to buy Bitcoin in June. Arizona’s law, signed in May, allows for a reserve fund made from lost or unclaimed digital assets. New Hampshire and Arizona have not yet used state money to fund their reserves.
Will Michigan Join This Exclusive Club?
Governments adopting Bitcoin is becoming a major trend for 2025. Many states and countries are now thinking about or actually using Bitcoin reserves. This is part of their public finance strategies. Businesses are also increasingly adding Bitcoin to their company treasuries. This wider acceptance by institutions has greatly boosted Bitcoin’s market value. Its price is up 25% this year. It even hit a new record high of over $124,000 in August.
Despite the growing excitement, some people still have concerns. They often point to Bitcoin’s well-known price swings. If approved, Michigan would become part of a select group of states. These pioneers are leading the way in integrating cryptocurrencies. Their new laws would support these financial reserve plans. Michigan has shown interest in cryptocurrencies before. In 2022, it even started a “Blockchain and crypto commission.” This group aimed to help the sector grow in the state. Also, Michigan’s state pension fund now invests in Bitcoin and Ethereum exchange-traded funds.