Michigan Crypto Reserve Bill Advances
The post Michigan Crypto Reserve Bill Advances appeared on BitcoinEthereumNews.com. Michigan’s crypto reserve bill has just advanced to committee, and is proposing up to 10% state investment in Bitcoin and digital assets. The Michigan crypto reserve bill has advanced to a second reading after months of waiting. House Bill 4087, which was first introduced in February, will allow the state treasurer to allocate up to 10% of two major funds into crypto assets. If approved, Michigan could follow states like Texas, New Hampshire and Arizona, which already permit treasuries to invest in Bitcoin. How the Michigan Crypto Reserve Bill Works Under HB 4087, the state could draw from the countercyclical budget and the economic stabilisation fund to buy crypto. Moreover, up to 10% of these reserves can be invested in digital currencies. The bill also includes strict security rules to protect funds. For starters, private keys must remain under government control with end-to-end encryption, no smartphone access and secure data centres across multiple regions. Multiparty authorisation and regular security audits are also required. The state treasury could also loan out its crypto holdings, as long as doing so does not increase financial risk. Debate Over Bitcoin vs. Other Cryptocurrencies Supporters argue that the Michigan crypto reserve bill strengthens the state’s financial strategy. However, not everyone agrees with its approach. The Michigan Bitcoin Trade Council, for example, opposes the bill in its current form. The group argues that by not limiting reserves strictly to Bitcoin, the bill exposes state funds to unnecessary risk. In their view, Bitcoin is the only digital asset that meets the requirements of decentralisation and security. Other lawmakers and analysts also see flexibility as a benefit. They argue that a wider definition allows the state to adapt as technology grows, instead of locking into a single asset. How Other States Handle Crypto Reserves Michigan is not alone…
The post Michigan Crypto Reserve Bill Advances appeared on BitcoinEthereumNews.com.
Michigan’s crypto reserve bill has just advanced to committee, and is proposing up to 10% state investment in Bitcoin and digital assets. The Michigan crypto reserve bill has advanced to a second reading after months of waiting. House Bill 4087, which was first introduced in February, will allow the state treasurer to allocate up to 10% of two major funds into crypto assets. If approved, Michigan could follow states like Texas, New Hampshire and Arizona, which already permit treasuries to invest in Bitcoin. How the Michigan Crypto Reserve Bill Works Under HB 4087, the state could draw from the countercyclical budget and the economic stabilisation fund to buy crypto. Moreover, up to 10% of these reserves can be invested in digital currencies. The bill also includes strict security rules to protect funds. For starters, private keys must remain under government control with end-to-end encryption, no smartphone access and secure data centres across multiple regions. Multiparty authorisation and regular security audits are also required. The state treasury could also loan out its crypto holdings, as long as doing so does not increase financial risk. Debate Over Bitcoin vs. Other Cryptocurrencies Supporters argue that the Michigan crypto reserve bill strengthens the state’s financial strategy. However, not everyone agrees with its approach. The Michigan Bitcoin Trade Council, for example, opposes the bill in its current form. The group argues that by not limiting reserves strictly to Bitcoin, the bill exposes state funds to unnecessary risk. In their view, Bitcoin is the only digital asset that meets the requirements of decentralisation and security. Other lawmakers and analysts also see flexibility as a benefit. They argue that a wider definition allows the state to adapt as technology grows, instead of locking into a single asset. How Other States Handle Crypto Reserves Michigan is not alone…
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