Michigan Joins State Crypto Policy Wave With Bills on Mining, CBDCs and Retirement Funds
Michigan lawmakers introduced four cryptocurrency bills on May 21, 2025, according to Cointelegraph. The legislative package addresses pension fund investments, central bank digital currency restrictions, Bitcoin mining at abandoned wells, and related tax policies.
State Pension Fund Bitcoin Investment
House Bill 4510, introduced by Representative Bill Schuette, would permit Michigan's state treasurer to invest retirement funds in cryptocurrencies. The bill restricts investments to digital assets averaging at least $250 billion market capitalization over the previous year. Currently, only Bitcoin and Ethereum qualify.
Decrypt reports the investments must occur through exchange-traded products managed by registered investment firms. The proposal follows Michigan's budget challenges, with the state owing teachers $29.9 billion in unfunded pension liabilities.
Bitcoin currently trades above $111,000, according to YCharts, with a market capitalization of $2.198 trillion as of May 22, 2025. The cryptocurrency reached new all-time highs this week.
Environmental Mining Initiative
Representatives Mike McFall's HB 4512 establishes a "Bitcoin Program" allowing private companies to mine cryptocurrency at abandoned oil and gas wells. Crypto.news explains operators would plug wells in exchange for temporary mining rights using residual fuel sources.
The Environmental Defense Fund mapped 81,000 orphaned wells across the United States. Federal funding exists for well remediation, but resources remain insufficient. Bitcoin mining could provide additional financing for environmental cleanup.
HB 4513 provides tax deductions for revenue earned through the mining program. Michigan joins Oklahoma, Mississippi, and Texas in considering similar legislation linking cryptocurrency operations to environmental remediation efforts.
CBDC Opposition Measures
House Bill 4511, sponsored by Representative Bryan Posthumus, prohibits state agencies from supporting central bank digital currencies. The bill bans licensing, taxation, or restrictions on digital asset holdings. It explicitly prevents Michigan departments from advocating for a U.S. CBDC.
CCN notes President Trump recently banned federal CBDC development through executive order. Michigan joins growing state-level opposition to digital dollar initiatives.
Reuters reports Trump's ban leaves China and Europe to advance their CBDC programs without U.S. competition. Over 130 countries previously explored CBDCs, representing 98% of the global economy.
Broader State Crypto Movement
Michigan's bills reflect accelerating state-level cryptocurrency adoption. CoinDesk reports New Hampshire became the first state approving crypto reserves on May 6, 2025. Texas passed similar legislation May 20, sending it to Governor Abbott.
Nasdaq confirms New Hampshire allows 5% of public funds for cryptocurrencies exceeding $500 billion market capitalization. The Satoshi Action Fund helped draft model legislation now spreading across states.
Twenty-seven states introduced Bitcoin reserve proposals in 2025. Arizona's governor vetoed their bill despite legislative passage. Florida indefinitely postponed both reserve bills. The Dallas News indicates Texas allocated no specific funding amount yet.
Michigan previously introduced HB 4087 in February 2025, proposing 10% of general funds for crypto investments. The state continues expanding its cryptocurrency framework through multiple legislative efforts.
State treasurers seek portfolio diversification amid inflation concerns. Bitcoin's performance attracted institutional attention, with CoinCodex projecting potential prices reaching $128,128 by May 26, 2025.
The legislative package awaits committee reviews and floor votes. Michigan joins a competitive state landscape where cryptocurrency policies increasingly influence economic development strategies. States recognize digital assets' growing role in modern finance.
Related Reading on BTC Peers
Explore the Global Bitcoin Policy Index (GBPI) to understand how different countries approach Bitcoin regulation and adoption. This comprehensive resource analyzes policy frameworks across nations, helping readers compare Michigan's proposed legislation with international standards and identify global trends in cryptocurrency governance.
