Michigan Introduces Comprehensive Cryptocurrency Legislation

News Summary

On May 21, 2025, Michigan lawmakers introduced four significant bills aimed at regulating cryptocurrency investments and mining. House Bill 4510 allows the state to invest in digital assets, while House Bill 4511 prevents bans on cryptocurrencies. Additionally, Bills 4512 and 4513 promote Bitcoin mining initiatives in abandoned sites and tax amendments for earnings, respectively. This legislative package aims to establish Michigan as a leader in the cryptocurrency landscape, addressing investment, regulatory, and operational challenges.

Lansing, Michigan – On May 21, 2025, Michigan lawmakers unveiled four significant bills aimed at shaping the state’s approach to cryptocurrency investments, regulation, and infrastructure. The proposed legislation reflects a strategic initiative to enhance Michigan’s role in the burgeoning digital asset landscape.

House Bill 4510, introduced by Republican Representative Bill Schuette, proposes amendments to the Public Employee Retirement System Investment Act, enabling the state treasurer, Rachael Eubanks, to invest in cryptocurrencies with a market cap exceeding $250 million within the past year. Currently, only Bitcoin (BTC) and Ether (ETH) meet this investment threshold. The legislation stipulates that these investments must be made through exchange-traded products from registered investment companies, rather than through direct purchases of cryptocurrencies.

This investment-focused initiative follows a similar proposal made in February, which sought to allow up to 10% of Michigan’s Budget Stabilization Fund to be allocated to cryptocurrency investments. The introduction of House Bill 4510 marks a more defined effort to integrate digital assets into state investment portfolios.

Accompanying Schuette’s bill is House Bill 4511, led by Republican Representative Bryan Posthumus. This legislation aims to prevent Michigan from banning cryptocurrencies or imposing licensing on crypto holders. Furthermore, it seeks to restrict state officials from advocating for federal central bank digital currencies (CBDCs). The bill’s definition of advocacy includes any official statements supporting CBDC proposals related to testing, adoption, or implementation.

House Bill 4512, a product of bipartisan collaboration led by Democratic Representative Mike McFall, introduces a Bitcoin mining program that utilizes abandoned oil and gas sites throughout Michigan. Supervisors will assess the economic viability of these locations based on various factors, including existing oil and gas potential and historical operator information. Participants in this mining initiative would need to submit legal documentation, demonstrate their operational capabilities, and provide estimations for breakeven costs associated with their mining operations.

Adding to the comprehensive package, House Bill 4513 also introduced by McFall’s bipartisan group, seeks to amend Michigan’s income tax laws to account for earnings derived from the Bitcoin mining program. This amendment could enhance revenue for the state while potentially boosting local economies through innovative mining operations.

This legislative set signals Michigan’s aspirations to position itself as a leader in the rapidly evolving fields of cryptocurrency and blockchain technology. The bills address a multitude of issues associated with digital assets, including investment mechanisms, regulatory frameworks, energy use, and personal privacy concerns.

Should these bills be successfully passed into law, Michigan could transform its approach to cryptocurrency, establishing itself as a model for state-level interaction with digital assets. This proactive legislative strategy signifies an acknowledgment of the growing importance of blockchain technology and cryptocurrencies in modern finance and investment.

The potential implications of these bills are noteworthy as they may usher in a new era for Michigan’s economy, connecting the state to the global cryptocurrency market while addressing crucial regulatory and operational challenges within the digital asset realm.

Deeper Dive: News & Info About This Topic

• Cointelegraph: Michigan Lawmakers Introduce Four Crypto Bills
• Wikipedia: Cryptocurrency
• BeInCrypto: US Lawmakers Crypto Regulation Michigan
• Google Search: Cryptocurrency Regulation Michigan
• MLive: Should Michigan Create Its Own Cryptocurrency?
• Encyclopedia Britannica: Cryptocurrency
• CCN: Michigan Digital Asset Awareness Day Bitcoin Reserve
• Google News: Michigan Cryptocurrency Legislation