HB4085 would amend Michigan’s Zoning Enabling Act to expressly allow digital asset mining, including cryptocurrency mining, as a permitted use in industrial zones. Under the bill, this use would not require special land use or conditional use approval when located in an industrial district.
The bill also limits how local governments may regulate these facilities. A local unit of government could not impose a specific decibel cap on a digital asset mining business beyond the general sound pollution limits that already apply to industrial zones, and it could not apply zoning restrictions, requirements, or burdens to digital asset mining that are not also applied to a data center in the same zoning district. The bill defines key terms such as blockchain, blockchain protocol, data center, digital asset mining, digital asset mining business, and node, with the mining-business definition focused on operations using more than 1 megawatt of energy.
Impact
If enacted, HB4085 would preempt local zoning discretion in industrial districts by creating a statewide rule that digital asset mining is a permitted industrial use and by limiting local governments’ ability to single out these operations for stricter zoning or noise regulation. It would effectively place cryptocurrency mining facilities on similar footing with data centers for zoning purposes in the same district, while preserving only generally applicable industrial sound limits. The bill would amend 2006 PA 110, the Michigan Zoning Enabling Act, by adding a new section 515.
Sentiment
The available record shows no committee transcripts, votes, or formal action history, so there is no documented legislative debate or recorded vote to gauge support or opposition. Based on the bill text alone, the measure appears designed to be industry-friendly and to reduce local regulatory barriers for digital asset mining in industrial areas.
Contention
The main point of contention is likely to be the bill’s restriction on local control. Municipalities and residents concerned about noise, electricity use, land-use compatibility, and the siting of large mining operations may object to the bill’s limits on special approvals and decibel-specific regulation. Supporters would likely favor the bill for providing regulatory certainty and treating digital asset mining similarly to data centers, while opponents may view it as a preemption of local zoning authority and a special carve-out for cryptocurrency mining.
Digital assets, prohibits the state from certain actions related to digital assets and exempts certain actions from classification as a security or money transfer