This US State Has Revived Plans for State Crypto Reserve

Michigan lawmakers are considering a bill that would let the state invest part of its public funds in crypto. On September 18, House Bill 4087 advanced to a second reading after months of inactivity. The bill is now before the House Committee on Government Operations.

Bill Outlines Use of Public Funds in Crypto Reserve

House Bill 4087 was introduced by Republican Representatives Bryan Posthumus and Ron Robinson. It proposes the creation of a “strategic crypto reserve” for Michigan. Under the plan, the state treasurer could invest up to 10% of money from the general fund, the countercyclical budget, and the economic stabilization fund in digital assets.

According to the update, the bill also sets rules for how these funds could be managed. The treasurer would be allowed to hold crypto through licensed custodians, storage providers, or exchange-traded products. Digital assets could also be lent out, but only if they carry no financial risk.

Lawmakers say the reserve could give Michigan another way to protect state finances during economic downturns. The proposal had been stalled since February 2025, but the recent vote shows the issue is back on the agenda.

Michigan May Join Growing List of States

If the measure passes, Michigan would become the fourth state to establish a crypto reserve. Texas, Arizona, and New Hampshire have already approved similar policies. Reports tracking state efforts show Michigan ranks sixth among states moving toward this type of legislation.

It is important to add that supporters see the initiative as part of a larger trend. More states are exploring ways to include digital assets in public finance. Lawmakers behind the bill believe the reserve could add a new tool to balance the state budget in challenging times.

Federal Moves Add to the Push

Developments at the federal level mirror what is happening in Michigan. Earlier this year, President Donald Trump signed the Strategic Bitcoin Reserve, a national measure aimed at building federal stockpiles of digital assets. This step is part of broader work by his administration to bring crypto into the economy.

In addition, the United States House of Representatives introduced a bill this month that directs the Treasury Department to study the feasibility of expanding digital reserves. The proposal calls for an assessment of how Bitcoin and other assets could support federal financial planning.

House Bill 4087 still has a long way to go. It needs approval in the state legislature and the governor’s signature before becoming law. Its progress, however, shows that Michigan lawmakers are giving digital assets a closer look as part of future financial planning.