This week, four bills focusing on various aspects of cryptocurrencies have been proposed in the Michigan legislature. These bills aim to address investment of public pensions in cryptocurrency, regulations for mining operations, potential tax exemptions related to crypto income, and limitations on providing support for Central Bank Digital Currencies (CBDCs).
Starting on May 23rd, four fresh bills, namely HB 4510, HB 4511, HB 4512, and HB 4513, have been presented in the Michigan legislature. This move signifies a unified effort to outline Michigan’s stance on cryptocurrency.
House Bill 4510, presented by Representative Bill Schuette, aims at modifying the Michigan Public Employee Retirement System Investment Act. This modification would permit the state treasurer to make investments in digital currencies like cryptocurrencies.
The proposed legislation limits access to digital assets that have accumulated an annual market value of at least $250 billion. At present, Bitcoin (BTC) and Ether (ETH) are the only ones fulfilling this requirement. These investments can be made via exchange-traded funds from licensed investment firms.
Under the proposal of Representative Bryan Posthumus’ House Bill 4511, it is suggested to prevent Michigan’s state and its local entities from forbidding the possession of digital assets or imposing licensing, permits, or discriminatory taxes solely because they are digital assets.
Additionally, it prohibits state agencies from expressing support or promoting a federal Central Bank Digital Currency (CBDC) through memos or formal approvals.
Moreover, this legislation safeguards those involved in blockchain networks by ensuring freedom of operation for nodes, transactions of assets, and staking, as well as immunizing validators and node administrators from civil responsibility.
Currently, there’s a proposed bill called House Bill 4512. This bill, spearheaded by a bipartisan team headed by Representative Mike McFall, proposes a partnership program for Bitcoin mining. The focus of this program is to utilize abandoned oil and gas wells as sites for this activity.
In this suggested plan, individuals or groups taking part will be granted short-term permissions to utilize these wells for power production. However, their responsibilities extend beyond just generating energy – they’ll also need to handle the tasks of sealing the wells post-use, restoring the site, and dealing with any potential emergencies that might arise.
The legislation mandates that the overseer of oil and gas wells should locate suitable sites, publicly disclose comprehensive evaluations, and organize a bidding system for potential vendors. The chosen parties are then expected to offer financial guarantees, supply environmental and productivity information, and submit annual reports.
Mining rights are contingent on adherence to these obligations and capped plugging costs.
As a passionate crypto investor, I took the initiative to spearhead the presentation of House Bill 4513. This bill aims to modify Michigan’s Income Tax Act, offering a tantalizing prospect: the exemption of income derived from a proposed Bitcoin mining operation, right here in our state, from state income tax.
The revision clarifies what types of income are exempt from taxes and ensures they match the guidelines set out by HB 4512’s program structure, offering a clear understanding for both individual and corporate tax filers involved in this project.
Beyond the four bills under consideration, Michigan is also exploring the possibility of establishing a strategic reserve for cryptocurrencies. House Bill 4087, introduced on February 13 by Representatives Posthumus and Ron Robinson, suggests this plan. If passed, it would empower the state treasurer to invest up to 10% of the general fund and Budget Stabilization Fund in cryptocurrencies.
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2025-05-23 12:14