Bitcoin legislation is moving forward in Michigan as lawmakers introduced four new bills on May 21, 2025. The bills are designed to support the use of digital assets across investment, mining, and taxation frameworks and reflect growing interest among U.S. states to define the role of cryptocurrencies in public policy.
Filed in the Michigan House late Wednesday, the proposals aim to strengthen the state’s stance on digital assets and bring clarity to how Bitcoin can be utilized in government and business operations.
Retirement Investment and regulatory guidelines
Representative Bill Schuette introduced House Bill 4510, which would allow Michigan’s state treasurer to invest retirement funds in cryptocurrencies. The bill sets a market capitalization requirement of at least $250 billion over the previous year, effectively limiting eligibility to Bitcoin. Investments must be made through exchange-traded products issued by regulated firms to ensure compliance and oversight.
House Bill 4511, introduced by Representative Bryan Posthumus, addresses concerns about federal efforts to create a central bank digital currency. It proposes a ban on any form of state-level licensing, taxation, or restriction of digital asset holdings. The bill also prevents state agencies from promoting or endorsing a U.S. CBDC.
Support for Bitcoin mining and environmental restoration
Representative Mike McFall introduced two related bills, HB 4512 and HB 4513, which aim to connect Bitcoin mining with environmental remediation. One bill proposes a program allowing private companies to mine Bitcoin at abandoned oil or gas well sites using residual fuel sources. In return, firms would receive temporary mining rights under state supervision.
The second bill offers tax incentives for companies engaged in this program. It allows income and corporate tax deductions tied to revenue earned from mining at these sites. The Supervisor of Wells would oversee the program, maintain a registry of eligible sites, issue bids, and ensure that participating firms cover the cost of site restoration.
State-Level crypto policies gain ground nationwide
Michigan joins a list of states advancing similar crypto-friendly legislation. New Hampshire recently approved a Bitcoin reserve, and Kentucky enacted a law supporting mining operations through financial incentives. Texas lawmakers passed a bill authorizing Bitcoin investments by the state comptroller, setting a $500 billion market cap threshold that only Bitcoin currently meets.
Despite these legislative moves, the Michigan bills must pass multiple stages before becoming law. They will undergo committee review, House and Senate votes, and require the governor’s signature. Past efforts in other states, such as Florida and Pennsylvania, have failed to move forward due to a lack of support.