House Bill 4087 would amend Michigan’s Management and Budget Act to allow the state treasurer to invest money from the general fund and the countercyclical budget and economic stabilization fund in cryptocurrency. The bill caps such investments at 10% of the available money in each fund and requires the treasurer to hold any cryptocurrency directly through a secure custody solution, a qualified custodian, or an exchange-traded product. It also authorizes the treasurer, under administrative rules, to loan cryptocurrency if doing so would not increase the state’s financial risk.
The bill further provides that taxes or fees paid to the state in cryptocurrency must be transferred to the general fund, with reimbursement made to any other affected fund in ordinary money. It defines key terms such as cryptocurrency, exchange-traded product, qualified custodian, private key, and secure custody solution, and sets detailed security and operational requirements for custody arrangements, including encryption, multi-party controls, disaster recovery, and code audits.
Impact
HB4087 would create a new statutory authority for the state treasurer to treat cryptocurrency as an eligible investment for two major state funds, which would be a significant change to state finance and investment law. It would also establish new custody, transfer, and risk-management rules for digital assets held by the state, while leaving the treasurer to promulgate implementing rules under the Administrative Procedures Act. The bill would affect the general fund, the countercyclical budget and economic stabilization fund, and any state payments or fees received in cryptocurrency.
Sentiment
The bill’s framing as a “strategic bitcoin reserve” suggests a pro-cryptocurrency policy approach, and the text itself is designed to enable state participation in digital asset markets while limiting exposure through a 10% cap and custody safeguards. Because no committee transcripts or votes are provided, there is no recorded legislative debate or roll-call evidence here to show broader support or opposition. Based on the bill language alone, the measure appears intended to modernize treasury investment options rather than to impose new obligations on the public.
Contention
The main points of contention are likely to be the prudence and risk of allowing public funds to be invested in cryptocurrency, the adequacy of the 10% cap, and whether the state should be permitted to loan digital assets for yield. Another likely issue is the complexity of the custody and security requirements, including whether the treasurer can reliably oversee secure storage, qualified custodians, and exchange-traded products. No specific opponents or supporters are identified in the provided materials, and there is no committee or vote record to indicate where disagreement may have centered.
State management: funds; interest earned from money in the countercyclical budget and economic stabilization fund; deposit into the child care payment fund. Amends sec. 351 of 1984 PA 431 (MCL 18.1351). TIE BAR WITH: SB 0946'26
Appropriations: supplemental; appropriations for multiple departments and branches for fiscal year 2025-2026; provide for. Creates appropriation act. TIE BAR WITH: SB 0878'26