Lawmakers in Michigan have brought back a previously dormant proposal that may permit the state to invest public funds in cryptocurrency.
On September 18, the Management and Budget Act, also known as House Bill 4087, progressed to its second reading and was sent to the House Committee on Government Operations, breaking over seven months of legislative standstill.
Introduced by Republican Representatives Bryan Posthumus and Ron Robinson, the legislation aims to establish a “strategic crypto reserve.”
The bill stipulates that the state treasurer may allocate up to 10% of funds from the general fund, the countercyclical budget, and the economic stabilization fund into digital assets.
The proponents of the bill contend that this measure would provide Michigan with another tool to mitigate financial downturns.
Additionally, the legislation specifies rigorous guidelines for managing the proposed reserve.
The treasurer could store crypto through qualified custodians, secure storage providers, or various exchange-traded products. It also permits the lending of digital assets, as long as such actions do not pose any financial risks.
HB 4087 remains in the preliminary stages of the legislative process, but its revival is significant. The proposal had stalled in February 2025, and industry stakeholders had believed the initiative was losing traction.
Nevertheless, Michigan lawmakers seem to be indicating a renewed commitment to advancing digital asset policies at the state level by progressing this bill.
If the measure successfully passes through the legislature and obtains the governor’s approval, Michigan would join Texas, Arizona, and New Hampshire as the fourth US state to formally adopt a crypto reserve.
Data from Bitcoin Reserve Laws indicates that Michigan currently ranks sixth among states exploring similar initiatives, showcasing the gradual proliferation of state-level Bitcoin legislation.
These state efforts align with movements at the federal level, where the administration led by Donald Trump is making significant advances in integrating cryptocurrency into the economy.
Earlier this month, the US House of Representatives introduced a bill directing the Treasury Department to assess the feasibility of a national strategic Bitcoin reserve and a broader digital asset stockpile.
