Michigan Proposes Pro-Bitcoin Laws, Rejects Support for Federal CBDC

• Michigan May Allow Crypto Retirement via ETFs
• Bills encourage green Bitcoin mining
• State wants to block federal government support for CBDCs

The state of Michigan is taking a more active stance in the cryptocurrency debate with the introduction of four bills aimed at regulating and promoting the sector. To proposal Most relevantly, Bill 4510 seeks to authorize investments in crypto assets in state retirement funds through exchange-traded products (ETFs), as long as the digital assets have a market capitalization greater than US$250 billion in the previous year.

According to the text, any investment of this type must be made exclusively through ETFs issued by duly registered investment companies, ensuring regulatory compliance and mitigating operational risks for public funds.

Another relevant bill, Bill 4511, introduced by Representative Bryan Posthumus, reinforces citizens’ right to own digital assets and prohibits the state from imposing restrictions or licensing requirements in this context. The text also determines that no state authority may formally support a central bank digital currency (CBDC) issued by the federal government, including through public statements or official documents.

Meanwhile, Rep. Mike McFall introduced HB 4512 and HB 4513, which create environmental and tax incentives for Bitcoin mining companies. One of the bills proposes a program to repurpose abandoned oil and gas wells for mining operations using the residual fuel, with temporary permits granted to participating companies.

The second bill provides tax deductions on corporate profits from sustainable mining practices. The Michigan Supervisor of Wells will be responsible for overseeing the program, maintaining records of eligible sites and ensuring that companies cover the costs of environmental restoration.

These initiatives follow similar moves seen in states like New Hampshire and Arizona, which have been exploring strategic reserves of Bitcoin as public assets. Michigan’s legislative proposal reflects a concrete attempt to incorporate cryptocurrencies into state finances, while rejecting any alignment with a possible federal CBDC.