Bill > HB4087

This bill amends the Michigan Management and Budget Act to establish guidelines for a strategic bitcoin reserve by allowing the state treasurer to invest up to 10% of available funds from the general fund and the countercyclical budget and economic stabilization fund in cryptocurrency. The bill defines cryptocurrency as a digital currency using encryption techniques that operates independently of a central bank. The state treasurer is permitted to hold cryptocurrency through secure custody solutions, qualified custodians, or exchange-traded products, and can even loan the cryptocurrency if it does not increase financial risk. The bill provides detailed requirements for secure custody solutions, including exclusive control of cryptographic private keys, encrypted environments, geographical diversification of data centers, multi-party governance, and regular security audits. Any cryptocurrency taxes or fees received must be transferred to the general fund, with appropriate reimbursements made to other funds if necessary. The bill also includes comprehensive definitions for terms like "qualified custodian" and "exchange-traded product" to provide clarity on the cryptocurrency investment framework.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4087