Michigan joins the running for a crypto Reserve bill - Coinfea

Michigan has joined the states proposing their crypto reserve bill, making the total list of states vying for the development to 20. According to reports, the HB 4087 bill was submitted on February 13 by Representative Bryan Posthumus and Ron Robinson.

ContentsMichigan could loan out its BTC reserve after approvalCommodity-backed stablecoin underwayThe bill will aim to amend the Management and Budget Act of the state. It will allow the state to set up a strategic crypto reserve backed by the largest cryptocurrency. “Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve,” Posthumus said on X.

Michigan could loan out its BTC reserve after approval

Michigan intends to allow its state treasurer to take out funds from the general and economic funds to invest in digital assets like Bitcoin. The new bill takes the shape of the one filed by Senator Charles Schwertner for Texas on February 12.

The state’s gravitation toward digital assets is not new as its state pension fund has already dipped its feet into crypto through exchange-traded funds (ETFs). The new bill will ensure that the holdings are increased, providing a competitive edge in the sector. The major highlight of the bill is requiring that the state hold these assets through ETPs on registered investment platforms.

Commodity-backed stablecoin underway

In addition to the reserve bill, Posthumus also teased the creation of MichCoin, a stablecoin backed by silver and gold stockpiles. Although the development is still in the initial stages, it signals the state’s move towards blockchain. With the submitted bills currently being pushed, approval could put enough capital in the market.

While Texas is one of the few states that just submitted one, North Dakota is the only state to have rejected the proposal. According to VanaEck’s Matthew Siegel, it could mean an injection of about $23 billion into the crypto sector. While there has been increased chatter about a reserve bill in the US, there has also been an increase in institutional adoption.