The mitten state could get diamond hands.

A bipartisan package of bills introduced on May 21 aims to position Michigan as a leader in cryptocurrency innovation. The legislation protects cryptocurrency users, establishes a framework for state investment in cryptocurrency, and allows currently abandoned infrastructure to be used for Bitcoin mining.

H.B. 4511, introduced by state Rep. Bryan Posthumus (R-Rockford), establishes a Cryptocurrency Bill of Rights. The bill prohibits state and local governments from banning cryptocurrency ownership or use, and ensures cryptocurrencies are taxed no differently than traditional fiat currency. It also permits the operation of cryptocurrency infrastructure, such as blockchain networks, and defines key terms to guide future policymaking.

“Our entire financial future is going to be based on blockchain technology,” Posthumus said. “Across the country more and more states are acting to embrace this innovation. Michigan must be at the forefront of this financial revolution or risk being left behind.”

House Bill 4510, introduced by state Rep. Bill G. Schuette (R-Midland), formalizes a process for the state treasurer to invest pension funds in cryptocurrencies like Bitcoin. Michigan made headlines in 2024 with its initial crypto investment, and this bill creates a structured and transparent framework for future investments. To ensure stability, the legislation restricts investments to cryptocurrencies with an average market capitalization of at least $250 billion over the prior 12 months, safeguarding against volatile ‘meme coins.’

“Michigan should be a leader in attracting investment, innovation and secure finance policies. This legislation helps make sure Michigan is at the cutting edge of the future of commerce in the 21^st century,” Schuette said.

H.B. 4512, sponsored by state Rep. Mike McFall (D-Hazel Park), allows Bitcoin miners to tap abandoned oil and natural gas wells owned by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) for electricity generation. These wells, which leak methane – a potent greenhouse gas – can be repurposed to power Bitcoin mining. In exchange for free access to this energy source, operators must later cap the wells, addressing an environmental hazard.

H.B. 4513, also sponsored by McFall, offers a tax exemption for Bitcoin mined through this program, incentivizing operators to assume responsibility for well remediation.

“Michigan must take an active role in shaping the future cryptocurrency. By embracing smart regulation and innovation, we can unlock new economic opportunities, attract tech investment, and create good-paying jobs while also protecting consumers,” McFall said. “This is about preparing Michigan for the economy of tomorrow and making sure our residents benefit from it.”