Michigan lawmakers have revived a dormant proposal that could allow the state to invest public funds in crypto.
Introduced by Republican Representatives Bryan Posthumus and Ron Robinson, the measure seeks to create a “strategic crypto reserve.”
According to the bill, the state treasurer can allocate up to 10% of money drawn from the general fund, the countercyclical budget, and the economic stabilization fund into digital assets.
The lawmakers argue that this would give Michigan an additional tool to hedge against financial downturns.
Meanwhile, the bill outlined strict rules for managing the proposed reserve.
The treasurer could custody crypto through qualified custodians, secure storage providers, or exchange-traded products. It also allows for lending out digital assets, provided such actions present no financial risk.
HB 4087 is still in the early stages of the lawmaking process, but its reemergence is notable. The proposal stalled in February 2025, and industry players had assumed the initiative was losing momentum.
However, Michigan lawmakers appear to be signaling renewed interest in advancing digital asset policy at the state level by moving the bill forward.
So, if the measure ultimately clears the legislature and receives the governor’s signature, Michigan would become the fourth US state to formally adopt a crypto reserve, alongside Texas, Arizona, and New Hampshire.
