Michigan Strategic Bitcoin Reserve Bill (HB 4087)

HB 4087 would amend Michigan’s Management and Budget Act, 1984 PA 431, by amending section 351 and adding section 351a. The bill focuses on state treasury authority, public fund investment limits, custody standards, and handling of cryptocurrency received by the state as taxes or fees. It does not create a general crypto licensing regime, consumer exchange framework, or private-market trading rule.

The central provision would permit the state treasurer to invest money from two state funds in cryptocurrency: the general fund and the countercyclical budget and economic stabilization fund. The bill would limit investment authority by providing that the treasurer may not invest more than 10% of the available funds in each covered fund in cryptocurrency.

The bill also addresses how the state would treat cryptocurrency received as taxes or fees. Cryptocurrency payments to the state would be transferred to the general fund. If the payment was designated for another fund, the treasurer would reimburse that fund from the general fund in money equal to the cryptocurrency amount received.

HB 4087 would require cryptocurrency held by Michigan in covered funds to be held directly by the state treasurer. The bill identifies three custody routes: a secure custody solution, a qualified custodian, or an exchange-traded product issued by a registered investment company. It defines a qualified custodian to include certain federal or state-chartered banks, trust companies, special purpose depository institutions, and state-regulated companies that custody cryptocurrency for an approved exchange-traded product.

The secure custody definition is detailed. It requires private-key controls, encrypted environments, geographically diversified secure data centers, multi-party governance, access controls, action logs, disaster recovery protocols, and regular code audits and penetration testing. These provisions suggest that the bill is designed to limit operational and custody risk if Michigan were to hold cryptocurrency through the proposed authority.

The bill would also permit the treasurer to loan state-held cryptocurrency only if the loan could be made without increasing financial risk to the state. Any lending framework would be implemented through rules promulgated under Michigan’s administrative procedures statute.

HB 4087 was introduced on February 13, 2025, by Rep. Bryan Posthumus, with Rep. Ron Robinson listed as a co-sponsor. It was initially referred to the House Communications and Technology Committee. On September 18, 2025, the House recorded second-reading and discharge-related actions before referring the bill to the Government Operations Committee. On March 19, 2026, the House again recorded second-reading and discharge-related actions and re-referred the bill to Communications and Technology.

Because HB 4087 remains in committee, it should be described as proposed legislation rather than an enacted Michigan strategic Bitcoin reserve law. The proposal is relevant to public-sector digital asset policy because it would place cryptocurrency investment and custody authority inside Michigan’s state finance statutes, but the bill would not itself authorize private entities to provide services or require residents to use cryptocurrency.