Lawmakers in the Michigan House of Representatives have introduced four new crypto-related bills as part of the state’s effort to define the role of digital assets in public policy. These legislations cover Bitcoin mining operations within the state, support for central bank digital currency (CBDC) by public officials, and crypto investments using state retirement funds.
Lawmaker Proposes Allowing Michigan’s State Treasurer to Invest Public Funds In Bitcoin and Ethereum ETFs
On May 21, Republican state Representative Bill Schuette introduced House Bill 4510, seeking to amend Michigan’s Public Employee Retirement System Investment Act to allow the state treasurer to invest retirement funds in cryptocurrencies, given that those assets have averaged a market cap of at least $250 billion over the previous calendar year.
The bill also states that the assets must be held through exchange-traded products issued by a registered investment firm, ensuring regulatory oversight. Currently, Bitcoin (BTC) and Ethereum (ETH) are the only cryptocurrencies that meet the threshold requirements.
A similar bill, called HB 4087, was introduced in the Michigan House back in February, which sought to amend the state’s Management and Budget Act to establish a strategic Bitcoin reserve. Representatives Bryan Posthumus and Ron Robinson, the bill’s authors, proposed permitting the state treasurer to allocate up to 10% from Michigan’s general and economic stabilization funds to invest in crypto assets. It also included a provision for lending the crypto to yield further returns, given that it does not increase financial risk to the state.
Michigan State Officials to be Prohibited from Supporting CBDCs
Rep. Posthumus was also involved with the second bipartisan crypto bill introduced on Wednesday, aimed at CBDCs. HB 4511 outright bans state officials from advocating or supporting the US government’s efforts to launch a digital currency. It also prohibits the government from licensing, taxing, or restricting any crypto asset held by Michigan residents.
The bill requires officials to issue a memorandum or official statement endorsing the proposal related to the testing, adoption, or implementation of a CBDC in the state.
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Michigan Could Allow Bitcoin Miners to Occupy Unused Oil and Gas Sites
The third legislation introduced by Democratic Rep. Mike McFall involves two companion bills, HB 4512 and HB 4513, focused on Bitcoin mining and tax reform.
HB 4512 establishes a “Bitcoin Program” that would allow crypto mining firms to set up operations at abandoned oil and gas sites across the state in exchange for temporary rights to mine Bitcoin using residual fuel sources.
It recommends that the state assign a ‘Supervisor of Wells’, who would examine abandoned well sites to determine how much oil or gas could have been produced, who the last operator was, and how long it has been left unused. The official would also maintain a public registry of eligible sites, solicit annual bids, and ensure that miners carry financial responsibility for restoring the well site.
Miners interested in participating in the Michigan Bitcoin Program would need to submit legal documents outlining their organizational structure, demonstrate their ability to operate as a Bitcoin mining company, and provide estimates of the break-even price for a profitable venture.
Meanwhile, HB 4513, technically the fourth bill, would amend the state’s income tax laws to include earnings from crypto mining as part of the state’s Bitcoin Program, offering income and corporate tax deductions to participants. This legislation links Bitcoin mining directly to environmental remediation.
Michigan’s legislative push comes amid efforts from several US states to adopt crypto as part of their economic and financial policy.
On Wednesday, the Texas House of Representatives passed a bill allowing the creation of a state-managed strategic reserve of Bitcoin. The bill has been sent to Governor Greg Abbott’s desk, who is expected to sign it into law.
Earlier this month, New Hampshire Governor Kelly Ayotte signed a bill similar to Michigan’s HB 4510, allowing the state treasurer to invest up to 5% of its $3.62 billion public funds in precious metals or digital assets with an average yearly market cap of at least $500 billion. The bill’s passage made New Hampshire the first US state to formally authorize crypto investments using public funds.