Michigan joins wave of US states proposing investments in crypto

Michigan's state representatives, Bryan Posthumus and Ron Robinson, proposed House Bill 4087, which, if approved, could allow Michigan to invest in cryptocurrencies such as bitcoin.“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 on X.This comes amid a trend in which an increasing number of U.S. states are exploring how to incorporate crypto into their financial strategies.House Bill 4087 aims to diversify investment options for Michigan’s state funds, potentially increasing yields by including crypto in the state’s investment portfolio.The bill proposes that Michigan’s treasurer invest up to 10% of the state’s "general" and "economic stabilization" funds into crypto.It also includes a provision permitting the state treasurer to loan out cryptocurrencies without increasing financial risk, aiming to generate additional returns for the state.Michigan had previously shown interest in cryptocurrency by creating a "blockchain and crypto commission" in 2022 to support the sector's growth in the state.The latest development makes Michigan the latest US state to propose legislation involving state investments in crypto.So far, around 20 states have proposed or are actively considering crypto reserve-related legislation, including North Carolina, Texas, Pennsylvania, Ohio and Oklahoma. The interest in bitcoin as an investment project among state lawmakers grew especially after pro-crypto Donald Trump took office in January.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.