Grand Rapids Reporter

A new legislative package introduced in Michigan aims to establish the state as a leader in cryptocurrency innovation. On May 21, lawmakers proposed a series of bills designed to protect cryptocurrency users, set up a framework for state investment in digital currencies, and repurpose abandoned infrastructure for Bitcoin mining.

State Representative Bryan Posthumus (R-Rockford) introduced H.B. 4511, which proposes a Cryptocurrency Bill of Rights. This bill seeks to prevent state and local governments from banning cryptocurrency ownership or use and ensures that cryptocurrencies are taxed similarly to traditional fiat currency. It also allows for the operation of cryptocurrency infrastructure like blockchain networks.

"Our entire financial future is going to be based on blockchain technology," said Posthumus. "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."

Another component of the package is House Bill 4510, put forward by State Representative Bill G. Schuette (R-Midland). This bill formalizes procedures for the state treasurer to invest pension funds in cryptocurrencies such as Bitcoin. The legislation sets guidelines that restrict investments to cryptocurrencies with an average market capitalization of at least $250 billion over the past year.

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

State Representative Mike McFall (D-Hazel Park) sponsored H.B. 4512, allowing Bitcoin miners to use abandoned oil and natural gas wells owned by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) for electricity generation. These wells can leak methane but could be repurposed for mining operations, with operators required to cap them later on.

Additionally, McFall sponsored H.B. 4513, offering tax exemptions for Bitcoin mined through this program as an incentive for well remediation.

"Michigan must take an active role in shaping the future cryptocurrency," McFall said. "By embracing smart regulation and innovation, we can unlock new economic opportunities, attract tech investment, and create good-paying jobs while also protecting consumers."

The legislative package seeks not only to position Michigan at the forefront of digital currency adoption but also addresses environmental concerns linked with abandoned energy infrastructures.