According to reports, the proposal would change the Michigan Management and Budget Act to create a strategic crypto reserve under the control of the state treasurer.
The measure would let the state treasurer place up to 10% of certain state funds into qualifying digital currencies. The funds named include the countercyclical budget and the economic stabilization fund.
HB 4087 been placed on the House second reading calendar, and referred to the Committee on Govt. Operations.
The bill also calls for technical safeguards: end-to-end encryption, no access via smartphones, geographically split secure data centers, multiparty sign-offs for transactions, and regular security audits.
Supporters argue the rules reduce the main risks. They say a careful, limited position could protect the state from dollar weakness while offering upside.
Lawmakers who introduced the bill — Representatives Bryan Posthumus and Ron Robinson — first filed it in February 2025, and its movement after roughly seven months of little action surprised some observers. Proponents also note that a few other US states have considered or passed similar measures.
Not everyone is sold. The Michigan Bitcoin Trade Council has argued the bill fails to set a market-cap floor, which could allow the state to buy smaller, less liquid tokens that swing wildly in price.
Critics worry that even with custody rules, crypto’s sharp ups and downs could leave public dollars exposed. Implementation questions remain too: who will manage key recovery, how audits will be handled, and how losses would be covered in a severe market drop.
Reports say the bill now sits with the Committee on Government Operations and could face close scrutiny in committee hearings.
If passed, Michigan would join a small group of states that have moved to let public treasurers hold crypto.
Featured image from Unsplash, chart from TradingView
