Michigan House Bill HB4510

Michigan 2025-2026 Regular Session

• Introduced: 5/21/25
• Refer: 5/21/25
• Refer: 9/18/25
• Report Pass: 12/11/25

Caption

Retirement: other; investment in cryptocurrency by certain retirement funds; allow. Amends 1965 PA 314 (MCL 38.1132 - 38.1141) by adding sec. 19c.

Summary

House Bill 4510 would amend Michigan’s Public Employee Retirement System Investment Act to allow certain retirement systems, where the state treasurer serves as investment fiduciary, to invest in cryptocurrency. The authorization is limited to digital assets with a market capitalization of at least $250 billion averaged over the prior calendar year, which effectively narrows the bill to the largest and most established cryptocurrencies. The bill also requires any digital asset held by the state in the covered funds to be held through an exchange-traded product issued by a registered investment company, rather than directly. The bill defines “cryptocurrency” as digital currency that uses encryption to regulate issuance and verify transfers and operates independently of a central bank. In practical terms, the measure would create a specific statutory exception within the state’s retirement investment law, permitting exposure to qualifying crypto assets under a regulated investment structure. It does not broadly require investment in cryptocurrency; it only authorizes it for eligible systems and only under the stated conditions.

Impact

HB 4510 would amend 1965 PA 314, the Public Employee Retirement System Investment Act, by adding a new section 19c. The change would expand the permissible investment options for retirement systems managed by the state treasurer, while preserving a regulatory constraint that any crypto exposure must be through an exchange-traded product issued by a registered investment company. This would affect state retirement fund investment policy and the fiduciary authority of the state treasurer, but only for the systems covered by the act.

Sentiment

The available voting history suggests the bill received generally favorable committee consideration, as it was reported with recommendation with substitute H-2 by a 7-1 vote. No committee transcript excerpts were provided, so there is no direct record here of detailed debate, but the vote indicates support for moving the measure forward with a substitute version. Overall, the bill appears to have had enough backing to advance, though not without at least some opposition.

Contention

The main point of contention is likely the prudence of allowing public retirement funds to invest in cryptocurrency, given the asset class’s volatility, regulatory uncertainty, and fiduciary risk. Supporters appear to favor giving retirement systems access to a new asset class under a narrow, high-market-cap threshold and through regulated exchange-traded products, while opponents likely worry about exposing public pension assets to speculative investments. The 7-1 committee vote shows that at least one member remained opposed, suggesting disagreement over whether crypto belongs in public retirement portfolios at all.