- Michigan has introduced a set of four crypto-related bills as US states continue exploring new digital asset frameworks.
- The first bill, if successful, would allow public retirement funds to invest in digital assets through exchange-traded products (ETPs).
- For now, this would be limited to Bitcoin and Ethereum, but could expand to other cryptocurrencies if they have a market cap of over $250 billion USD.
- Additionally, Michigan is exploring the use of abandoned oil/gas sites for local Bitcoin mining operations.
US states continue their foray into the digital assets sector, following in the footsteps of President Donald Trump.
In the first six months or so of his term, Trump ordered the creation of a Federal Reserve comprising Bitcoin, while also investigating a digital asset stockpile for cryptocurrencies seized as proceeds of crime.
Now, Michigan is the latest state gearing up to join the wave of financial innovation. The Northern state bordering Canada recently introduced a series of bills seeking to make crypto a part of Michigan’s ecosystem.
So, let’s find out how the local government plans to revolutionise its finances by…using oil rigs for Bitcoin mining (it’s much less outrageous than it sounds).
Related: GENIUS Act Anti-Corruption Amendment Planned to Foil Trump Stablecoin Profiteering
Michigan Bill Supports Bitcoin and Ether ETPs for Public Retirement Funds
The primary focus of Michigan’s venture is to rejig legislation around retirement assets for residents.
Currently, public retirement systems – those looking after public servants such as educators and government workers – do not allow investment in digital currencies.
House Bill 4510 is looking to change that by introducing policies supporting crypto as a retirement asset. The bipartisan bill has some restrictions though. For example, only digital currencies with a market cap of over $250 billion USD ($384 billion AUD) are eligible.
So just Bitcoin and Ethereum, for now.
Additionally, investors can only expose their pensions to these assets via exchange-traded products (ETPs).
So yeah, Fink and BlackRock will continue to get richer.
Nevertheless, if the bill passes, it will be yet another example of how cryptocurrency is finding its feet in modern finance.
It might not be exactly what Satoshi envisioned fifteen years ago, but Bitcoin has cemented itself as part of the world’s financial future.
Bitcoin Miners to Kickstart Operations at Abandoned Oil Rigs, Bill Proposes
Retirement policies and strategic reserves have been key to crypto’s growth in acceptance across the United States. Texas and Arizona recently greenlit new frameworks supporting crypto investment for these purposes.
However, that’s not all that’s on Michigan’s agenda.
The second bill working through the House of Reps, number 4511, would prevent the state from being involved in any sort of Federal, USD-based cryptocurrency.
Simply put, it is a rejection of a central-backed digital currency (CBDC), which has been a cause of significant discourse across governments and crypto communities.
But, perhaps most interesting, are the final two crypto-related proposals, House Bill 4512 and 4513.
The first bill suggests that Michigan allows Bitcoin mining agencies to set up base at abandoned oil and gas sites, leveraging the pre-existing source of power. To make this more appealing, the secondary, accompanying bill proposes that businesses receive a tax incentive for participating in the initiative.
It’s an ambitious goal for Michigan, and one that will need to endure the scrutiny of policymakers before going live.
But if it succeeds, it could revolutionise how Bitcoin miners manage their environmental impact in the United States.
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