Quick Breakdown
- Michigan House Bill 4087 advances to committee review, aiming to establish a strategic crypto reserve.
- The bill allows up to 10% of stabilization funds to be invested in crypto under strict custody rules.
- Bitcoin advocates oppose the bill’s broad scope, warning it could include riskier altcoins.
Michigan lawmakers are pushing forward with legislation that could make the state one of the few in the U.S. to hold cryptocurrency as part of its reserves.
Bill moves to second reading
On Thursday, the Michigan House Bill 4087 advanced to a second reading and was referred to the Committee on Government Operations. The proposal, introduced in February by Republican Representatives Bryan Posthumus and Ron Robinson, seeks to amend the Michigan Management and Budget Act to authorize a “strategic crypto reserve.”
The legislation would allow the state treasurer to allocate up to 10% of funds from Michigan’s “countercyclical budget” and “economic stabilization fund” into cryptocurrency.
Custody and security provisions
The bill lays out strict requirements for how digital assets must be stored. Approved methods include a secure custody solution with government-controlled private keys, a qualified custodian such as a bank, trust company, or regulated entity and Exchange-traded products from registered investment companies
Additional safeguards include end-to-end encryption, geographically distributed data centers, multiparty authorization, and independent security audits. The bill also permits the state to lend out digital assets, provided this does not increase financial risk.
Bitcoin not named exclusively
While the legislation doesn’t mention Bitcoin specifically, it defines eligible assets as digital currencies that rely on cryptography and operate independently of central banks. This omission has drawn criticism from the Michigan Bitcoin Trade Council, which argues that the lack of restrictions could expose the state to “unnecessary risk” by enabling the purchase of altcoins.
Hello @bitcoin_laws, HB 4087 is not a Bitcoin Reserve Bill. The word bitcoin is not mentioned anywhere in the bill. This is a cryptocurrency bill.
The Michigan Bitcoin Trade Council does not support HB 4087.
This is a bill that enables the state of Michigan to invest in ANY…
— Michigan Bitcoin Trade Council (@MichBTCtc) September 18, 2025
National context
If enacted, Michigan would join New Hampshire, Arizona, and Texas, which have already passed similar measures. Massachusetts and Ohio are also considering comparable bills according to Bitcoin Laws, while proposals in Montana, North Dakota, South Dakota, Wyoming, and Pennsylvania have been rejected. According to Bitcoin Reserve Monitor, 17 more states currently have legislation pending.
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