Michigan lawmakers propose a bitcoin investment plan for the state treasury

A new legislative proposal in Michigan seeks to create Bitcoin reserves as part of the state’s financial strategy. On February 13 /

However, Michigan is now joining 19 other states in the United States that have provided or traded in encrypted investment policies in the encrypted currency, with the continued final legislative approval.

Michigan HB 4087 bill

Under the newly proposed legislation In Michigan, the state treasurer will have the ability to invest in encrypted currency using funds from both the General Fund and the Economic Stability Fund, although the total investment cannot exceed 10 %. The draft law does not impose any restrictions on the types of cryptocurrencies that can be obtained.

Moreover, it includes a condition that allows the state to lend to its encryption assets, as long as this lending does not constitute additional financial risks. The treasury secretary is authorized to lend these assets to generate additional returns for Michigan. To maintain security, the state must store the cryptocurrency through safe nursery services or invest in products circulating on the stock market from organized investment companies.

Michigan’s pension fund is already involved in cryptocurrency investments, with bitcoin boxes and boxes circulating on the stock exchange. According to a report submitted to the US Securities and Stock Exchange Committee (SEC) in November, the retirement system in Michigan had informed 460,000 shares of Trust Ethereum Grayscale, along with equal number of shares in Ethereum Mini Trust.

Bitcoin strategic reserves for the American state

Many US states have proposed the strategic Bitcoin reserve bills that are expected to pay 23 billion dollars of BTC purchases, according to Matio Siegel from Vaneck. This number excludes the allocations of pension funds and can rise if legislation is advanced.

Currently, 20 states of encryption bills have suggested, as Arizona and Utah advances more. Texas has recently introduced a new bill for investment in Bitcoin, while Montana, Ouhayu, Florida and others have suggested similar legislation. Northern Dakota is the only country that rejected such a proposal.