Lawmakers in Michigan Propose Fresh Cryptocurrency Legislation
Michigan Legislators Propose Four Crypto Bills to Integrate Digital Assets into State's Financial Landscape
Detroit - Michigan is poised to significantly redefine its cryptocurrency landscape with the introduction of four bills, HB 4510, HB 4511, HB 4512, and HB 4513. These legislative proposals aim to facilitate the use of digital assets within the state's financial infrastructure.
HB 4510 seeks to amend the Michigan Public Employee Retirement System Investment Act, enabling the state treasurer to invest in cryptocurrencies under specific conditions. Representative Bill Schuette introduced this bill, which limits investments to digital assets with an average market capitalization of $250 billion over the preceding year. Currently, only Bitcoin and Ether meet this criteria. Noteworthy, all investments would be channeled through exchange-traded products from registered investment companies.
In HB 4511, Representative Bryan Posthumus proposes protections for digital asset owners. The bill aims to prevent the state and its subdivisions from restricting digital asset ownership and imposing discriminatory taxes based solely on digital asset usage. Additionally, it prohibits state agencies from endorsing or supporting a U.S. central bank digital currency (CBDC). HB 4511 further safeguards blockchain users by allowing node operations, asset transfers, and staking, and shields validators and node operators from civil liability.
Meanwhile, HB 4512 and HB 4513 target the leveraging of old oil sites within the state for Bitcoin mining. Representative Mike McFall and a bipartisan team introduced HB 4512 to launch a Bitcoin mining program using abandoned oil and gas wells. This program grants temporary energy-use rights to participants who agree to plug the wells and restore the sites, also handling any necessary response actions. The bill directs the supervisor of wells to find eligible sites and publish detailed evaluations, oversee a competitive bidding process, and require financial guarantees, environmental, and production data from chosen participants, as well as annual reports.
Finally, HB 4513 plans to amend Michigan's Income Tax Act to exempt income derived from the proposed Bitcoin mining program. The bill clearly defines exempt income and aligns it with the framework outlined in HB 4512, providing clarity and financial incentives for individuals and businesses involved in the bitcoin mining initiative.
Together, these bills could signal Michigan's commitment to embracing cryptocurrency, positioning the state as a leader in crypto-friendly policies, potentially benefiting the iGaming and crypto casino industries by offering regulatory clarity, encouraging institutional investment, promoting sustainable mining, and fostering a favorable environment for crypto casinos and gaming platforms.
- The introduction of HB 4510 in Michigan's legislature suggests a move towards integrating cryptocurrencies into the state's financial infrastructure, specifically within the Michigan Public Employee Retirement System, as it allows investments in digital assets under certain conditions.
- Recognizing the potential benefit of technology, Michigan's HB 4512 and HB 4513 aim to leverage old oil sites for Bitcoin mining, positioning the state as a innovator in the cryptocurrency space and encouraging sustainable practices within the business sector.
