Michigan has introduced a bill to create a strategic cryptocurrency reserve, joining 19 other US states exploring similar initiatives. The proposal, put forward by Representatives Bryan Posthumus and Ron Robinson, would allow up to 10% of the state's general and economic stabilisation funds to be invested in digital assets.

The bill grants the state treasurer authority to manage crypto holdings using secure custody solutions or regulated investment products. It also permits lending cryptocurrency to generate additional returns, provided it does not increase financial risk. Additionally, any crypto tax payments must be converted into fiat currency before being allocated to state funds.

Michigan's proposal follows a similar bill in Texas and reflects a growing trend amongst states to embrace digital assets. The move builds on Michigan's previous crypto investments, including its significant holdings in Bitcoin and Ethereum exchange-traded funds.