A bill to set up a strategic crypto reserve has been introduced in Michigan, making it the 20th state to consider a digital currency reserve.
Presented by representatives Bryan Posthumus and Ron Robinson on February 13, House account 4087 proposes that the State treasurer assigns up to 10% of both the General Fund of the State and the Economic Stabilization Fund for investments in cryptocurrency.
According to the legislative proposal, the treasurer of the State would be responsible for keeping and managing crypto investments directly using a ‘secure guardianship solution’, a ‘qualified custodian’, or an ‘exchange-related product’ of a regulated investment company.
The bill also opens the door for crypto loans and explains that if it can be done “without increasing the financial risk for this state”, the treasurer can borrow the cryptocurrency to generate extra returns.
In addition, the bill requires that any taxes or reimbursements that are paid to the State in Cryptocurrency must be transferred to the General Fund. If a payment or reimbursement was originally intended for another fund, the treasurer must repay that fund in Fiat -Valuta that is equivalent to the crypto received.
With this Michigan joins 19 other US states currently wholesale A strategic reserve of cryptocurrency and is located in different stages of legislation.
Experts speculate that Utah will be the first state to approve such a bill because of the 45-day legislative timeline, which is the shortest among all other states. It also benefits from a dedicated Task Force Digital Asset that has consistently driven crypto-related laws in the direction of approval.
Meanwhile, Michigan’s bill is following a similar proposal presented In the Senate of Texas by Senator Charles Schwertner on 12 February. stressed That Michigan “should come to Texas in the leader of Crypto policy” by signing the “Michigan Crypto Strategic Reserve”.
Michigan has previously investigated crypto investments via Bitcoin and Ethereum-Beurs built funds. In November, the State of Michigan Retirement System became one of the top five holders of Grayscale’s Spot ETF ETF via an investment of $ 10 million. This was on top of the $ 6.6 million invested in Ark 21Shares’ Arkb Spot Bitcoin ETF in July.
