Michigan’s legislature advanced a Strategic Bitcoin Reserve bill that would permit the state to invest up to 10% of public funds in Bitcoin, moving the proposal one step closer to becoming law. If enacted, the measure would rank among the most ambitious state-level Bitcoin adoption efforts in the United States.
The proposal joins a broader trend: more than 20 U.S. states introduced or debated similar Bitcoin reserve legislation in 2024 and early 2025, driven in part by renewed institutional interest as Bitcoin reached new highs. Michigan’s public pension system already holds a small Bitcoin exposure indirectly through exchange-traded funds, and this bill would expand the state’s ability to allocate digital assets directly within treasury operations.
The move aligns with recent federal policy shifts under the current administration, which has expressed support for the idea of a national Bitcoin reserve and encouraged exploration of digital assets as part of public portfolios.
Supporters frame state Bitcoin reserves as potential hedges against inflation and currency devaluation, drawing comparisons to sovereign wealth funds that diversify into alternative assets.
Opponents highlight Bitcoin’s pronounced price volatility as a material risk to taxpayer-backed funds.
The legislation still requires additional approvals before Michigan could begin purchasing Bitcoin for its public funds, and debate is likely to focus on risk management, custody arrangements, and allocation limits.
- Risk management — strategies to limit exposure and volatility impacts
- Custody arrangements — secure storage and third‑party custodial oversight
- Allocation limits — procedural and governance safeguards around the up to 10% cap
