Michigan Lawmakers Introduce Four Key Crypto Bills

Michigan lawmakers have introduced four crypto-oriented bills: HB 4510 allows state retirement funds to invest in qualified cryptocurrencies; HB 4511 prohibits bans on crypto and state support for CBDCs; HB 4512 establishes a Bitcoin mining initiative at abandoned sites; and HB 4513 amends tax laws to include income from Bitcoin mining activities.

In a significant move, Michigan lawmakers have tabled four bills focused on cryptocurrency, specifically addressing areas like crypto mining, central bank digital currencies (CBDCs), and state retirement funds. The wave of legislation comes amid growing interest in digital assets and their potential integration into public finance.

The first bill, House Bill 4510, introduced by Republican Representative Bill Schuette on May 21, seeks to amend Michigan’s Public Employee Retirement System Investment Act. This means the state treasurer — currently Rachael Eubanks — could invest in cryptocurrencies that meet a minimum market cap requirement of $250 million averaged over the last year. At this point, only Bitcoin and Ethereum qualify. Furthermore, any cryptocurrency investments must be made through an exchange-traded product from a registered investment firm.

Another bill, which arrived earlier in February, provides a framework for the state treasurer to invest up to 10% of the Budget Stabilization Fund into cryptocurrencies, hinting at a growing willingness to engage with digital currencies in state financial strategies.

Shifting gears, HB 4511, spearheaded by Republican Representative Bryan Posthumus on the same day, is a bipartisan attempt to safeguard crypto activity in Michigan. The bill aims to prevent the state from banning cryptocurrencies or imposing any licensing requirements on crypto owners. In a bold move, it also seeks to restrict state officials from endorsing or promoting a federal CBDC that could undermine the traditional cryptocurrency markets.

If passed, the bill would consider any advocacy against a CBDC to include issuing formal statements or memos that discuss its testing or adoption, further complicating potential federal actions regarding digital currency.

The focus on mining isn’t overlooked, with the introduction of HB 4512 by a bipartisan group, led by Democratic Representative Mike McFall. This bill would develop a Bitcoin mining initiative specifically targeting abandoned oil and gas locations, encouraging operators to repurpose these sites. Participants will need to demonstrate their capacity as a Bitcoin mining operation and submit detailed documentation outlining their business models and expected costs.

Finally, the fourth bill, HB 4513, also spearheaded by McFall, would modify Michigan’s income tax laws to ensure that revenue generated from the proposed Bitcoin mining initiative is subject to taxation. This underlines the state’s intention to create a structured approach around cryptocurrency mining, reflecting both opportunity and economic responsibility.