The total number of crypto reserve-related legislatures in the US has risen to 20 as Michigan becomes the latest state to propose a strategic Bitcoin reserve bill.
Representatives Bryan Posthumus and Ron Robinson introduced HB 4087 on Feb. 13 to amend the state’s Management and Budget Act, with the objective to establish a strategic crypto reserve for the largest digital asset by market cap.
“Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve,” Posthumus said in a Feb. 13 post on the social media platform X.
Michigan’s Bitcoin reserves could be loaned out if approved
If approved, Michigan will allow the state treasurer to invest in cryptocurrencies such as Bitcoin (BTC) with funds from the general and economic stability funds.
Michigan’s proposal follows similar legislative efforts by states such as Texas, where Senator Charles Schwertner filed for a cryptocurrency reserve on Feb. 12.
Michigan’s interest in digital assets isn’t something new. The state’s pension fund already has exposure to Bitcoin and Ethereum via exchange-traded funds (ETFs). The current law seeks to increase the state’s holdings, ensuring Michigan’s competitiveness in the nascent crypto market and evolving financial landscape.
One of the main stipulations of the proposed Michigan Bitcoin strategic reserve bill is that the state hold its crypto reserves directly through secure custody solutions or exchange-traded products (ETPs) that are issued by registered investment companies.
Michigan also looking into launching a commodity-backed stablecoin
In addition to submitting a filing for a Michigan Bitcoin strategic reserve, Posthumus also proposed the concept of ‘MichCoin’, a prospective Michigan-backed stablecoin linked to commodities such as gold and silver stockpiles. While still at the conceptual stage, the move signals Michigan’s growing interest in using blockchain technology for state-backed digital currency efforts.
If the Bitcoin reserve proposals by 20 US states that have already advanced beyond the level of the House committee are approved, it could lead to an influx of capital into the crypto market.
The most recent proposal was submitted by the Lone Star state Texas. Meanwhile, North Dakota is the only state so far that has rejected a proposal for a crypto investment, according to data from Bitcoin Reserve Monitor.
VanEck’s head of digital assets Matthew Sigel predicted that the approval of these funds could lead to a $23 billion injection. This wave of liquidity could then introduce some buy side pressure in BTC’s order books. Along with the uptick in Bitcoin strategic reserve bills in the US, there is also increasing institutional adoption around Bitcoin. Metaplanet announced on Feb. 12 that it raised around $26.1 million to purchase more of the leading crypto. The funds were raised through zero-interest, unsecured and unguaranteed bonds.
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