- Michigan is aiming to integrate crypto into public finance through pensions and strategic reserves
- The state is actively opposing CBDCs and protecting crypto participants from regulatory overreach
- Innovative mining incentives tied to energy reclamation signal a new era of Bitcoin mining policy
Something interesting is unfolding in Michigan right now—and if you’re deep in the crypto trenches like we are, this isn’t just another state-level headline. It’s a glimpse into how local governments might start building their own frameworks for the digital economy.
Let’s break it down.
This week, four new crypto-related bills—House Bills 4510 through 4513—hit the Michigan legislature like a coordinated drop. They touch everything from Bitcoin mining to CBDCs, from pension funds to income tax breaks.
You can tell this isn’t just about regulation—it’s about control, strategy, and positioning.
Let’s unpack what’s happening here, piece by piece.
House Bill 4510: Crypto in Michigan’s Public Pension Portfolios?
This one turns heads.
HB 4510 would let Michigan’s Public Employee Retirement System invest in digital assets—but not just any token on the block. It limits eligibility to cryptos with a $250B+ average market cap, which basically narrows the field down to two names: Bitcoin and Ethereum.
And we’re not talking about direct wallet holdings. These would be exchange-traded products issued by registered investment companies. Institutional grade. TradFi’s version of crypto exposure.
If this passes, Michigan might become the first state to put BTC and ETH on the books for retirement funds.
Think about that for a second.
House Bill 4511: The Anti-CBDC, Pro-Freedom Bill
HB 4511 feels like Michigan’s digital declaration of independence.
It says the state won’t mess with your right to hold, use, stake, or operate nodes. It also explicitly bans support or advocacy for a federal CBDC. No press releases, no endorsements, no state-backed digital dollar love letters.
There’s more: the bill prohibits licensing, permitting, or discriminatory taxation based on crypto use. It’s a full-on protection shield for participants in the blockchain ecosystem.
This is Michigan taking a clear stance: let the chains run freely—and don’t touch our wallets.
House Bill 4512: Mining Meets the Oilfields
Here’s where it gets creative.
HB 4512 proposes a Bitcoin mining partnership program—but not in the way you might expect. It targets abandoned oil and gas wells across the state and allows miners to use them for energy generation.
In return, miners have to plug the wells, clean up the sites, and follow a checklist of environmental obligations. There’s a bidding system, reporting requirements, and annual oversight baked in.
It’s a smart play: turn environmental liabilities into economic opportunity while aligning incentives between energy and blockchain.
And it might just become a blueprint for other energy-rich states with similar industrial legacies.
House Bill 4513: Tax-Free Mining Profits? Yes, Please.
Of course, if you’re going to invite miners in, you better sweeten the deal.
HB 4513 ties into the mining programme and exempts earnings from it from state income tax. The bill lays out how this applies to both individuals and businesses—creating a clean, tax-optimized structure around the initiative.
This isn’t just legal clarity. It’s a competitive edge.
Michigan wants miners to build here—and they’re putting money where their policy is.
Michigan’s Broader Crypto Vision
And don’t forget this: Michigan already had a fifth crypto bill on the table. Back in February, HB 4087 proposed a state-run strategic crypto reserve—up to 10% of the general fund and stabilization fund could go into digital assets.
Taken together? These aren’t scattered proposals. They’re a cohesive strategy.
Michigan is trying to position itself as one of the most crypto-forward states in the U.S.—balancing innovation, autonomy, and fiscal advantage.
The message is loud and clear: the state wants to play the long game in Web3.
