Michigan is advancing a bill to establish a strategic crypto reserve, allowing the state to invest in cryptocurrency under certain conditions. The bill, HB 4087, is moving to a second reading and includes guidelines for the reserve but does not specifically mention Bitcoin. The legislation was introduced in February by Republican Representatives Bryan Posthumus and Ron Robinson, permitting the state treasurer to invest up to 10% of funds from specific budgets in crypto assets. The bill also outlines security requirements for custody solutions and allows for loans to generate additional returns.

The Michigan Bitcoin Trade Council opposes the bill, citing concerns about the lack of specific market capitalization requirements that could lead to other cryptocurrencies being purchased by the state. The group argues that allowing non-Bitcoin assets in the reserve would create unnecessary risk due to the centralized nature of other cryptocurrencies. The state advocacy group believes that only Bitcoin should be included in the strategic reserve to minimize risks.

Michigan joins Massachusetts and Ohio in advancing legislation for a strategic crypto reserve, while only New Hampshire, Arizona, and Texas have enacted laws allowing state treasurers to invest in Bitcoin and crypto assets. Several states have rejected similar bills, including Montana, North Dakota, South Dakota, Wyoming, and Pennsylvania. Seventeen other states have pending legislation related to crypto reserves, according to the Bitcoin Reserve Monitor. Only three states currently have the legal ability to invest in cryptocurrency.

Read more at Cointelegraph: Michigan Crypto Reserve Bill Advances To Second Reading