Michigan’s Cryptic Financial Moves: A Bitcoin Reserve Saga!

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Ever heard of a state putting its money where its �� mouth is? Well, Michigan lawmakers have taken a leap into the crypto abyss with their latest proposal! On the 13th of February, Representatives Bryan Posthumus and Ron Robinson introduced HB 4087, a bill that would add Bitcoin investments to Michigan’s Management and Budget Act.

Move over, 19 other US states, for Michigan’s about to steal your crypto thunder! But don’t worry, their final approval is still pending, so there’s time to jump on the bandwagon.

Michigan’s HB 4087: A Crypto-tastic Bill!

So, what’s in this bill, you ask? Well, the state treasurer can now invest in cryptocurrencies using funds from the general fund and the economic stabilization fund, with a 10% cap on the total investment. And guess what? There are no restrictions on the type of cryptocurrencies they can buy!

Want more? The bill even lets the state lend its crypto assets to generate more returns, as long as it doesn’t add financial risk. To keep things secure, Michigan will store its cryptocurrencies using secure custody services or invest in exchange-traded products from regulated investment companies.

Surprised? Don’t be! Michigan’s state pension fund has already dipped its toes in the crypto pool, with holdings in Bitcoin and Ether exchange-traded funds. According to a filing with the US Securities and Exchange Commission (SEC), the State of Michigan Retirement System owned 460,000 shares of the Grayscale Ethereum Trust and an equal number of shares in the asset manager’s Ethereum Mini Trust.

US State Strategic Bitcoin Reserves: A Crypto Gold Rush!

According to VanEck’s Matthew Sigel, strategic Bitcoin reserve bills in 20 US states could lead to $23 billion in BTC purchases. And that’s just the beginning! If legislation advances, that figure could rise, excluding pension fund allocations.

While Arizona and Utah are already making waves, Texas recently joined the party with a new Bitcoin investment bill. Montana, Ohio, Florida, and others are following suit. But North Dakota? They’ve rejected the proposal, proving they’re not as adventurous as their counterparts.

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2025-02-15 02:28