Michigan legislators introduce a series of crypto bills focused on state investments, mining operations, and regulation of central bank digital currencies
This week, the Michigan legislature introduced four new cryptocurrency-related legislation. These bills relate to public pension investments in crypto, mining, income tax exemptions, and restrictions on CBDC support.
House Bills 4510, 4511, 4512, and 4513, four new proposed legislations, have been introduced in the Michigan legislature as of May 23. This coordinated effort aims to establish the state’s stance on cryptocurrency.
House Bill 4510, which Representative Bill Schuette introduced, aims to amend Michigan’s Public Employee Retirement System Investment Act to permit the state treasurer to invest in cryptocurrencies.
To qualify for the law, digital assets must have an average market capitalization of at least $250 billion over the previous calendar year. Currently, this threshold is satisfied by only Bitcoin (BTC) and Ether (ETH).
These investments must be executed through exchange-traded instruments that a registered investment company issues.
House Bill 4511, which Representative Bryan Posthumus sponsors, suggests that the state and its subdivisions be prohibited from enforcing licensing, permitting, or discriminatory tax requirements exclusively based on the usage of digital assets or from denying the holding of digital assets.
In addition, it prohibits state agencies from issuing official endorsements or memoranda that advocate for or support any federal CBDC.
In addition, the law safeguards blockchain participants by prohibiting restrictions on node operations, asset transfers, and staking while shielding validators and node operators from civil liability.
Concurrently, House Bill 4512, a bipartisan group introduced under the leadership of Representative Mike McFall, delineates a Bitcoin mining partnership program intended to target abandoned oil and gas wells.
The proposed program would grant participants temporary access to the wells for energy generation in exchange for their commitment to site restoration, sealing, and response activities.
The supervisor of wells is mandated by the measure to identify eligible sites, publish comprehensive assessments, and oversee a competitive bidding process.
In addition to submitting environmental and production data, selected participants must submit financial assurances and an annual report.
Adherence to these obligations and capped plugging costs are prerequisites for mining rights.
The introduction of House Bill 4513, which would amend Michigan’s Income Tax Act to exempt income earned through the proposed Bitcoin mining program from state income tax, was also spearheaded by McFall.
Providing clarification for individual and corporate taxpayers participating in the initiative, the amendment defines the scope of exempt income and aligns it with the program framework established under HB 4512.
In addition to these four measures, Michigan is also discussing the establishment of a strategic cryptocurrency reserve.
Originally introduced as House Bill 4087 on February 13, this proposal, which was supported by Representatives Posthumus and Ron Robinson, would allow the state treasurer to allocate up to 10% of the general fund and Budget Stabilization Fund for crypto investments.
