Michigan lawmakers file 4 crypto bills on retiree funds, CBDCs, mining

Michigan lawmakers have introduced four significant crypto-related bills, reflecting a growing engagement with the digital asset landscape. These bills address crypto mining, central bank digital currencies (CBDCs), and the inclusion of cryptocurrencies in state retirement funds.

House Bill 4510, introduced by Republican Representative Bill Schuette, proposes amending the Public Employee Retirement System Investment Act. This amendment would grant the state treasurer the authority to invest in cryptocurrencies meeting specific criteria: a market capitalization exceeding $250 million over the preceding year. Currently, only Bitcoin (BTC) and Ether (ETH) satisfy this condition. Crucially, the bill mandates that any cryptocurrency investments be held solely through exchange-traded products issued by registered investment companies. A similar bill, introduced earlier in February, proposed allocating up to 10% of Michigan’s Budget Stabilization Fund to cryptocurrencies.

A second bipartisan bill, HB 4511, spearheaded by Republican Representative Bryan Posthumus, focuses on preventing Michigan from enacting bans or licensing requirements on cryptocurrency holders. Importantly, it prohibits state officials from actively endorsing or supporting a potential federal CBDC. The bill defines such support as issuing official statements or memoranda endorsing a CBDC’s testing, adoption, or implementation.

The third bill, HB 4512, introduced by a bipartisan group led by Democratic Representative Mike McFall, creates a novel Bitcoin mining program utilizing abandoned oil and gas sites. This program would involve a site supervisor assessing the site’s potential oil and gas yield, identifying previous operators, and determining its period of disuse. Applicants would need to submit comprehensive legal documentation, demonstrate their mining capabilities, and provide detailed financial projections including their breakeven price.

Finally, HB 4513, also introduced by McFall’s bipartisan group, amends Michigan’s income tax laws to explicitly include income generated from the proposed Bitcoin mining program. These four bills collectively represent a multifaceted approach to integrating cryptocurrencies into Michigan’s economic and financial landscape, highlighting the state’s evolving stance on digital assets.