Crypto News: Michigan Wants Bitcoin in Its Piggy Bank

Michigan Bitcoin Reserve Bill HB 4087 has made its first progress since February. It has advanced to the second reading in the state House of Representatives, marking a major step in its legislative journey as of September 2025.

The Bitcoin Reserve Bill (HB 4087) Advances to Second Reading

The bill, which allows the state to invest in crypto assets under specific conditions, has moved to a second reading and was referred to the Committee on Government Operations. The legislation amends the Michigan Management and Budget Act to create rules and guidelines for a strategic crypto reserve. 

The Michigan Bitcoin Reserve bill was initially introduced by Republican Representatives Bryan Posthumus and Ron Robinson in February. It allows up to 10% of state government funds to be invested in cryptocurrencies. However, it doesn’t specify which digital assets can be used for strategic reserves. 

The bill states, “ Crypto currency means digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, and that operates independently of a central bank.”

Three Criteria of Holding Crypto 

The bill says the state can hold its crypto in one of three ways:

1. A secure custody solution.
2. A qualified custodian, like a bank or trust company 
3. An exchange-traded product issued by a registered investment company.

The bill also allows the state treasurer to loan the cryptocurrency for earning more money, but only if it does not pose any financial risks. 

Adoption of Bitcoin Reserves in the US

Nearly two dozen states in the US are working to implement a Bitcoin reserve. As of September 2025, New Hampshire passed the bill with HB 302,  which lets its treasurer invest in digital assets with a market cap over $500 billion. Texas followed with Bill 2749 and SB 21 to create a Bitcoin reserve funded by state money. Lastly, Arizona passed the law with a different approach. 

Now, Michigan has joined the list of states creating a crypto reserve, paving the way for greater use of digital assets.