House Bill 4087 Advances to Allow Michigan Crypto Reserve

House Bill 4087 Advances to Let Michigan Invest Reserves in Crypto

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 19, 2025

Key Takeaways

Michigan's House Bill 4087 would let the state invest up to 10% of its key reserves in certain types of decentralized digital currencies;
The proposal sets strict rules for storing crypto, requiring secure custody, regulated custodians, or approved investment products;
The bill allows limited lending of state-held digital assets if it does not raise financial risk and mandates strong security controls.

Don't miss out - BYDFi new user bonus is now LIVE! Join BYDFi & unlock up to $2,000 in rewards. Claim Bonus! 🎁

BITDEGREE IN YOUR SOCIAL FEED

Michigan lawmakers are considering a bill that would allow the state to invest a portion of its emergency funds in digital currencies.

On September 18, the proposed legislation, House Bill 4087, reached its second reading and was passed along to the Committee on Government Operations for further consideration.

The bill, introduced in February by Republican representatives Bryan Posthumus and Ron Robinson, would enable the state treasurer to allocate up to 10% of two financial reserves, the Economic Stabilization Fund and the Countercyclical Budget Reserve, into certain types of cryptocurrency.

What is Ripple? Beginner-Friendly XRP Explainer (Animated)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Rather than listing specific cryptocurrencies, the bill defines eligible assets as digital currencies that use encryption to manage how units are created and verify transactions, and that operate without oversight from a central bank.

To manage risk and protect public funds, the bill outlines three methods for holding digital assets: through a dedicated, secure custody system, with a qualified custodian such as a regulated bank or trust company, or by investing in exchange-traded products from registered investment firms.

There is also a provision that allows the state to lend out its digital assets in certain cases, provided the arrangement does not expose the state to increased financial risk.

The legislation also requires strict security measures for storing cryptocurrency. These include limiting private key access to the government, using encrypted systems, restricting mobile device access, and storing data in secure locations.

Recently, Brian Armstrong, CEO of Coinbase $2.31B , shared his views on recent legislative progress concerning digital assets in the US. What did he say? Read the full story.