Michigan Introduces Four Bills to Regulate Cryptocurrencies

Michigan lawmakers have introduced four new bills aimed at regulating cryptocurrencies, marking a significant step in defining digital asset policy at the state level. These bills are designed to limit federal control over financial innovation and provide a clearer framework for the use and investment of cryptocurrencies within the state.

One of the key bills, House Bill 4510, introduced by Rep. Bill Schuette, authorizes the state treasurer to invest retirement funds in cryptocurrencies. This investment is contingent on the assets having an average market capitalization of at least $250 billion over the prior year, effectively limiting the scope to Bitcoin, which recently hit a record high. The bill mandates that such investments be made through exchange-traded products managed by registered investment firms to ensure proper oversight and regulation.

Another significant bill, House Bill 4511, sponsored by Rep. Bryan Posthumus, targets federal efforts to roll out a central bank digital currency (CBDC). This legislation proposes a ban on any state agency or department from supporting, testing, or promoting a U.S. CBDC. It also seeks to shield digital asset holders from additional state-level restrictions or taxes, providing a layer of protection for those who hold cryptocurrencies.

On the other side of the political spectrum, Rep. Mike McFall has filed two companion bills—HB 4512 and HB 4513—focused on Bitcoin mining and environmental remediation. One bill outlines a “Bitcoin Program” that would grant private firms temporary rights to mine Bitcoin at abandoned oil or gas well sites, utilizing leftover fuel. In return, companies would be responsible for site restoration, ensuring that the environmental impact of mining is minimized. The accompanying bill offers state tax deductions for income generated through this type of mining activity, providing an economic incentive for companies to participate in the program. The program would be regulated by the Supervisor of Wells, who would oversee a public registry of eligible sites, conduct annual bidding rounds, and enforce restoration obligations.

These proposals from Michigan add to a growing patchwork of crypto legislation emerging across the U.S. Earlier the same day, Texas lawmakers passed a bill to establish a state-run Bitcoin reserve. New Hampshire recently became the first state to authorize crypto and precious metal investments for public funds, indicating a broader trend of states taking proactive measures to integrate cryptocurrencies into their financial systems.