Michigan lawmakers have revived a dormant proposal that could allow the state to invest public funds in codes.
On September 18, the Management and Budget Act, also known as House Bill 4087, entered the second reading, and was introduced to the House Committee on Government Work, ending more than seven months of legislative inactivity.
The measure, introduced by Republican Party leaders Brian Poshummus and Ron Robinson, is about to create a “strategic crypto sanctuary.”
According to the bill, state treasurers can allocate up to 10% of money withdrawn from the General Fund, the Counter-Circulation Budget and the Economic Stabilization Fund to digital assets.
Lawmakers argue that this will give Michigan additional tools to hedge a financial recession.
Meanwhile, the bill outlined strict rules for administering proposed reserves.
Treasurer may detain cryptocurrencies through qualified custodians, secure storage providers, or products traded on exchanges. You can also lend out digital assets if such actions do not present financial risk.
HB 4087 is still in the early stages of the legislation process, but its re-emergence is noteworthy. The proposal stagnated in February 2025, and industry players assumed the initiative was losing momentum.
But Michigan lawmakers appear to be showing renewed interest in moving forward with digital asset policies at the state level by moving forward with the bill.
So, if the measure finally clears Congress and receives the governor's signature, Michigan will become the fourth US to formally adopt a crypto sanctuary alongside Texas, Arizona and New Hampshire.
Bitcoin Reserve Act data shows that Michigan is currently ranked sixth among states pursuing similar initiatives, reflecting the gradual spread of state-level Bitcoin Act.
The efforts of these states are in line with development at the federal level where the Donald Trump-led administration has made great strides in integrating codes into the economy.
Earlier this month, the U.S. House of Representatives introduced a bill that directed the Treasury to assess the feasibility of national strategic Bitcoin reserves and broader digital asset stockpiles.
