Michigan lawmakers introduce new crypto bills covering state investments, mining, and CBDCs

Four new cryptocurrency-related bills were introduced in the Michigan legislature this week, covering public pension investments in crypto, mining, income tax exemptions, and restrictions on CBDC support.

As of May 23, four new proposed legislations, House Bills 4510, 4511, 4512, and 4513, have been introduced in the Michigan legislature, marking a coordinated push to define the state’s approach to cryptocurrency.

House Bill 4510, introduced by Representative Bill Schuette, seeks to amend Michigan’s Public Employee Retirement System Investment Act to allow the state treasurer to invest in cryptocurrencies.

The bill restricts eligibility to digital assets with an average market capitalization of at least $250 billion over the past calendar year. Currently, only Bitcoin (BTC) and Ether (ETH) meet this threshold. These investments must be made through exchange-traded products issued by a registered investment company.

House Bill 4511, sponsored by Representative Bryan Posthumus, proposes prohibiting the state and its subdivisions from banning the holding of digital assets or imposing licensing, permitting, or discriminatory tax requirements based solely on digital asset usage. 

It also bars state agencies from advocating for or supporting any federal CBDC by issuing memoranda or official endorsements.

Additionally, the bill protects blockchain participants by preventing restrictions on node operations, asset transfers, and staking, while shielding validators and node operators from civil liability.

Meanwhile, House Bill 4512, introduced by a bipartisan group led by Representative Mike McFall, outlines a Bitcoin mining partnership programme targeting abandoned oil and gas wells.

Under the proposed programme, participants would receive temporary rights to use the wells for energy generation in return for assuming responsibility for plugging, site restoration, and response activity.

The bill requires the supervisor of wells to identify eligible sites, publish detailed assessments, and manage a competitive bidding process. Selected participants must provide financial assurances, submit environmental and production data, and report annually.

Mining rights are contingent on adherence to these obligations and capped plugging costs.

McFall also led the introduction of House Bill 4513, which would amend Michigan’s Income Tax Act to exempt income earned through the proposed Bitcoin mining programme from state income tax.

The amendment defines the scope of exempt income and aligns it with the programme framework established under HB 4512, providing clarity for both individual and corporate taxpayers participating in the initiative.

In addition to these four bills, Michigan is also considering the creation of a strategic cryptocurrency reserve. Introduced on Feb. 13 as House Bill 4087, this earlier proposal,  backed by Representatives Posthumus and Ron Robinson, would authorize the state treasurer to allocate up to 10% of the general fund and Budget Stabilization Fund for crypto investments.