Michigan joins crypto reserve race with House Bill 4087

A bill to establish a strategic crypto reserve was presented in Michigan, which makes it the 20th State to consider a reserve supported by digital currency.

Presented by the Representatives Bryan Posthumus and Ron Robinson on February 13, House Bill 4087 proposes to authorize the treasurer of the State to allocate up to 10% of the general state fund and the economic stabilization fund for cryptocurrency investments.

According to the bill, the state treasurer is responsible for the detention and management directly of cryptography investments using a “secure care solution”, a “qualified guardian” or a “negotiated product on the stock market ”of a regulated investment company.

The bill also opens the door to cryptographic loans, declaring that if it can be done “without increasing the financial risk for this state”, the treasurer can lend the cryptocurrency to generate additional yields.

In addition, the bill obliges to say that taxes or costs paid in the state in cryptocurrency must be transferred to the general fund. If a payment or costs was initially intended for another fund, the treasurer is required to reimburse this fund in fiduciary currency equivalent to the crypto received.

With this, Michigan joins 19 other American states which are currently considering a strategic cryptocurrency reserve and are various steps legislation.

Experts speculate Utah will be the first state to adopt such a bill because of its 45 -day legislative calendar, which is the shortest among all other states. It also benefits from a working group on dedicated digital assets which systematically motivated the laws linked to cryptography to approval.

Meanwhile, the Michigan bill follows a similar proposal presented In the Senate of Texas by Senator Charles Schwertner on February 12. Commenting on the Texas bill, POSTHUMUS stressed That Michigan should “join Texas to direct the cryptography policy” by signing the “Strategic Reserve of Michigan Crypto”.

Michigan previously explored investments in cryptography via Bitcoin and Ethereum negotiated funds. In November, the Michigan State retirement system has become one of the Top five holders From the Graycale ETF ETF spot via an investment of $ 10 million. It was in addition to the $ 6.6 million invested In the FNB Bitcoin of the Arkb Spot of Ark 21Shares in July.