Michigan lawmakers have revived a dormant proposal that could allow the state to invest public funds in crypto.
On Sept. 18, the Management and Budget Act, also known as House Bill 4087, advanced to its second reading and was referred to the House Committee on Government Operations, ending more than seven months of legislative inactivity.
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.
Data from Bitcoin Reserve Laws shows that Michigan now ranks sixth among states pursuing similar initiatives, reflecting the gradual spread of state-level Bitcoin legislation.
These states’ efforts coincide with developments at the federal level, where the Donald Trump-led administration is making giant strides in integrating crypto into the economy.
Earlier this month, the US House of Representatives introduced a bill instructing the Treasury Department to evaluate the feasibility of a national strategic Bitcoin reserve and broader digital asset stockpile.