Michigan Proposes Crypto Investments Amid Growing State Interest in Digital Assets

Michigan has joined a growing list of U.S. states exploring cryptocurrency investments with a newly proposed bill that could allow the state to allocate funds into digital assets like Bitcoin. House Bill 4087, introduced by state representatives Bryan Posthumus and Ron Robinson, aims to diversify Michigan’s financial portfolio by permitting up to 10% of its general and economic stabilization funds to be invested in cryptocurrencies.

The proposed legislation comes as an increasing number of states assess how crypto assets can be integrated into their financial strategies. Representative Posthumus emphasized Michigan’s potential leadership in crypto policy, referencing Texas as a model. “Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve,” he stated on X (formerly Twitter).

If passed, the bill would authorize Michigan’s treasurer to allocate state funds into crypto assets, seeking potentially higher returns through portfolio diversification. It also includes provisions that would allow the state to lend out cryptocurrencies to generate additional revenue while mitigating financial risk.

Michigan’s interest in cryptocurrency investment is not new. In 2022, the state established a Blockchain and Crypto Commission to promote the sector’s growth and study its potential economic impact. The introduction of HB 4087 represents a significant step toward formalizing the state’s involvement in digital asset investments.

Michigan’s move reflects a broader trend among U.S. states evaluating crypto reserves. Approximately 20 states, including North Carolina, Texas, Pennsylvania, Ohio, and Oklahoma, have either proposed or are actively considering similar legislation. The momentum behind such initiatives has accelerated since the inauguration of pro-crypto policies under the Trump administration.