Nikolas Sargeant
Michigan lawmakers introduced four comprehensive cryptocurrency bills on Wednesday, marking the state's significant push toward defining digital asset policy while limiting federal oversight of financial innovation. The legislative package addresses retirement fund investments, central bank digital currencies, and environmental applications for cryptocurrency mining.
Rep. Bill Schuette (R-MI) sponsored House Bill 4510, which would authorize Michigan's state treasurer to invest retirement funds in cryptocurrencies with market capitalizations averaging at least $250 billion over the previous year. This requirement effectively limits eligible investments to Bitcoin, which recently reached a record high of $111,000. The bill mandates that such investments must be made through exchange-traded products managed by registered investment firms to ensure proper oversight and regulatory compliance.
CBDC Ban and Environmental Mining Initiatives
House Bill 4511, introduced by Rep. Bryan Posthumus (R-MI), directly targets federal central bank digital currency (CBDC) implementation efforts. The legislation proposes prohibiting any state agency or department from supporting, testing, or promoting a U.S. CBDC while also protecting digital asset holders from additional state-level restrictions or taxation.
On the Democratic side, Rep. Mike McFall (D-MI) filed two companion bills—HB 4512 and HB 4513—focused on Bitcoin mining and environmental remediation. The first bill establishes a "Bitcoin Program" that would grant private companies temporary rights to mine Bitcoin at abandoned oil or gas well sites using leftover fuel resources. In exchange, these companies would assume responsibility for site restoration and environmental cleanup.
The accompanying bill provides state tax deductions for income generated through this environmentally focused mining activity. The program would operate under the Supervisor of Wells, who would maintain a public registry of eligible sites, conduct annual bidding processes, and enforce restoration requirements.
Growing State-Level Crypto Adoption Trend
Michigan's legislative initiative reflects a broader national trend of state-level cryptocurrency adoption. Earlier the same day, Texas lawmakers passed legislation establishing a state-run Bitcoin reserve, while New Hampshire recently became the first state to authorize cryptocurrency and precious metal investments for public funds.
This state-level activity coincides with increasing institutional interest in digital assets. Blackstone, the world's largest alternative asset manager, made its first cryptocurrency investment on May 20 by purchasing $1.08 million worth of BlackRock's iShares Bitcoin Trust (IBIT) shares.
Similarly, Indonesian fintech DigiAsia Corp saw its stock surge over 91% after announcing plans to raise $100 million for Bitcoin treasury purchases, with the company committing to allocate up to 50% of net profits toward Bitcoin acquisition.
The trend continues with established players like Michael Saylor's Strategy (formerly MicroStrategy) doubling its capital-raising efforts to $84 billion for additional Bitcoin purchases, demonstrating sustained institutional momentum in cryptocurrency adoption across both public and private sectors.
