Bitcoin in the Spotlight as Michigan Introduces Bold Crypto Legislation

Michigan takes a bold leap into the crypto frontier with new legislation spotlighting Bitcoin, paving the way for public investment, eco-conscious mining, and resistance to centralized digital currencies.

Zagham Abbas
May 22, 2025
10:30 pm

Zagham Abbas

Zagham is a renowned crypto journalist known for his insightful analysis and in-depth reporting on the cryptocurrency industry.

Four new Michigan bills aim to advance Bitcoin adoption through public investment, mining incentives, and regulatory clarity.
HB 4510 would allow state retirement funds to invest in Bitcoin via regulated exchange-traded products.
HB 4511 prohibits state support for a U.S. central bank digital currency, citing privacy and control concerns.
HB 4512 and HB 4513 offer incentives for eco-friendly Bitcoin mining tied to cleaning up abandoned oil and gas wells.

Bitcoin is at the center of a bold legislative push in Michigan, where lawmakers have introduced four new bills designed to support cryptocurrency adoption, investment, and mining at the state level. Filed on May 21, 2025, the proposals aim to define Michigan’s role in the rapidly growing digital asset economy and reflect a broader trend of pro-crypto momentum across the United States.

🇺🇸 NEW: Four new Bitcoin bills were introduced today in Michigan today

1. Allowing State Retirement fund investment

2. Banning CBDCs, and other rights protections

3 + 4. Allowing Bitcoin mining on abandoned oil & gas wells, & tax deductions for it pic.twitter.com/57pjvDwEiH
— Bitcoin Laws (@Bitcoin_Laws) May 21, 2025

Leading the legislative package is House Bill 4510, introduced by Rep. Bill Schuette (R-MI). The bill proposes allowing Michigan’s state treasurer to invest public retirement funds in cryptocurrencies, provided those assets maintain a market capitalization of at least $250 billion over the previous year and are held via exchange-traded products (ETPs) issued by registered investment firms.

Furthermore, under these conditions, Bitcoin currently stands as the only eligible asset, making it the primary focus of the proposal. By mandating the use of ETPs, the bill ensures oversight and compliance, presenting a model for conservative yet forward-looking public fund management.

Michigan Blocks CBDC Use with New Digital Asset Bill

Another bill in the package, House Bill 4511, introduced by Rep. Bryan Posthumus (R-MI), takes a firm stance against the federal government’s potential rollout of a central bank digital currency (CBDC). The legislation seeks to prohibit any Michigan state agency from supporting, promoting, or enforcing the use of a U.S. CBDC. Additionally, it protects citizens from taxation or licensing requirements related to their digital asset holdings.

The bill positions Michigan among a growing number of states expressing concern over CBDC implementation, citing privacy risks and centralized financial control.

The final two bills, HB 4512 and HB 4513, introduced by Rep. Mike McFall (D-MI), highlight an innovative approach to Bitcoin mining and environmental restoration. HB 4512 proposes the creation of a state-led “Bitcoin Program” allowing private firms to plug abandoned oil and gas wells in exchange for temporary rights to mine Bitcoin using residual energy resources.

This win-win initiative not only encourages energy-efficient mining but also addresses environmental liabilities through private-sector partnerships.

HB 4513 complements the initiative by introducing tax deductions for income earned from mining operations that contribute to well-site cleanup. The program would be overseen by the state’s Supervisor of Wells, who would manage a registry of eligible sites and enforce restoration standards.

States Compete in Bitcoin Policy

Michigan’s legislative push is the latest example of U.S. states shaping their crypto policies. New Hampshire, Texas, Kentucky, and Arizona have all advanced similar laws to either invest in Bitcoin, support mining, or resist federal digital currency oversight.

Earlier this month, New Hampshire became the first U.S. state to legalize public fund investments in Bitcoin and precious metals, while Texas passed a bill to establish a state-managed Bitcoin reserve, currently awaiting the governor’s signature. Kentucky’s Blockchain Digital Asset Act offers tax incentives to miners, reinforcing the state’s role as a blockchain innovation hub.

Although the introduction of these bills marks a significant milestone, the legislation must still clear several hurdles, including committee hearings, floor votes in both the House and Senate, and final approval from Michigan’s governor.

Crypto-related bills have failed in other states, such as Florida and Pennsylvania, due to political friction and public skepticism. Still, Michigan’s actions signal a shift toward pro-crypto economic development, and if successful, the state could become a blueprint for responsible digital asset regulation and innovation.