Key Notes
- The legislation aims to create financial stability during periods of economic recession and high unemployment.
- Michigan joins Arizona, New Hampshire, and Texas in advancing cryptocurrency reserve legislation at state level.
- Nearly two dozen additional states including Illinois, Kentucky, and Pennsylvania have similar bills under review.
The US state of Michigan recently advanced a bill to establish a 10% cryptocurrency reserve. The legislation has been referred to the Committee on Government Operations.
The legislation, dubbed House Bill 4087, was originally introduced on February 13, 2025. It was initially referred to the Committee on Communications and Technology before lying dormant from February 18 through September 18 when it was placed on a “second reading” and advanced for further consideration.
According to the bill’s text , the reserve would be established with no more than 10% of select funds in cryptocurrency and cryptocurrency exchange-traded funds. The reserve would then be used “to assist in stabilizing revenue and employment during periods of economic recession and high unemployment.”
It’s unclear at this time when the bill could move forward again. Committee members are on recess until at least September 24.
Growing National Trend Toward Cryptocurrency Reserves
Meanwhile, Michigan joins a growing number of US states with legislation on the table to establish a Bitcoin or cryptocurrency reserve. Arizona, New Hampshire, and Texas have passed bills to establish reserves, and nearly two dozen other states including Illinois, Kentucky, Maryland, Ohio, and Pennsylvania have bills in various stages of review.
As Coinspeaker reported in August , the State of Michigan Retirement System previously began its own cryptocurrency reserve with a $6.6 million investment in the ARK 21Shares Bitcoin ETF. Just weeks later, Michigan tripled its stake in the ETF, boosting holdings from 100,000 to 300,000 shares.
Bitcoin has seen a leap in state interest over the past 24 months, with global government holdings worldwide estimated at between 463,000 and 527,000 BTC. According to data from The Bit Journal , this accounts for almost 2.5% of circulating supply.
The US holds the largest Bitcoin reserve with a stockpile of approximately 200,000 BTC ; however, much of the government’s holdings are considered seized assets and, thus, are technically not owned by the US. In some cases, the US has been cleared to sell or use some of the Bitcoin it holds from seizures; however, there’s currently no green light legislation giving the treasury full control over the total assets held by government agencies
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