Michigan has become the latest state to propose a bill to establish a strategic bitcoin reserve, bringing the total number of states working on legislation to 20. On February 13, Representatives Brian Posthumus and Ron Robinson introduced HB 4087, which amends the state Management and Budget Act to create a strategic bitcoin reserve.

The bill would allow the state treasurer to invest in cryptocurrency from both the general fund and the economic stabilization fund, with a 10% limit. The bill does not specify any restrictions or rules on which cryptocurrencies can be purchased for the reserve.

Additionally, the bill provides for cryptocurrency lending, stating that “if cryptocurrency can be loaned without increasing the financial risk to the state, the state treasurer may loan cryptocurrency to generate additional revenue for the state.”

This initiative reflects the growing acceptance of digital assets at the state level. Similar bills have been proposed in other states, such as Wyoming and Texas, where cryptocurrencies are becoming part of financial strategies.

If the bill passes, Michigan will become another state that officially recognizes digital assets as a means to store value and finance government needs.