Michigan has moved forward with its strategic crypto reserve bill, with House Bill 4087 advancing to a second reading in the Committee on Government Operations. The legislation allows the state to invest up to 10% of its funds from the countercyclical budget and economic stabilization fund in cryptocurrency under specific conditions. It does not specifically mention Bitcoin but sets guidelines for a crypto reserve. The bill was introduced by Republican Representatives Bryan Posthumus and Ron Robinson, emphasizing secure custody solutions and technical requirements for holding digital assets. Despite the support for the bill, the Michigan Bitcoin Trade Council has raised concerns, arguing that the absence of a market cap in the legislation could lead to the state investing in riskier cryptocurrencies beyond Bitcoin, which they believe is centralized and prone to volatility. As of now, only three states have advanced similar bills, while legislative attempts in several other states have been rejected or remain pending.

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