Michigan Revives Crypto Reserve Bill Amid Growing Digital Asset Momentum

Michigan lawmakers have reignited a legislative proposal that could pave the way for state investment in cryptocurrencies. The Management and Budget Act, or House Bill 4087, advanced to its second reading on Sept. 18 after months of dormancy, signaling renewed interest in digital asset policy at the state level.

Introduced by Republican Representatives Bryan Posthumus and Ron Robinson, the bill aims to establish a "strategic crypto reserve"—allowing the state treasurer to allocate up to 10% of funds from key budgets into digital assets. Proponents argue this creates a hedge against economic volatility while imposing strict custody rules through qualified providers.

The revival of HB 4087 marks a strategic shift. After stalling in February 2025, its reemergence coincides with broader institutional adoption trends. Custody provisions explicitly permit exposure via exchange-traded products, potentially creating new institutional demand channels for major assets.