Four new crypto bills have been introduced by Michigan legislators aimed to utilize cryptocurrency into the state’s financial landscape. The four bills are HB 4510, HB 4511, HB 4512, and HB 4513 – each bill tackles various cryptocurrency issues.
HB 4510 seeks to amend Michigan’s Public Employee Retirement System Investment Act. Introduced by Representative Bill Schuette, the bill aims to allow the state treasurer to invest in cryptocurrencies under specific conditions.
It limits investments to digital assets averaging a $250 billion market cap over the past year. Currently, only Bitcoin and Ether qualify and meet the requirements. Additionally, all investments must go through exchange-traded products from registered investment companies.
HB 4511 aims to protect digital asset rights in Michigan. Representative Bryan Posthumus introduced the bill, and seeks to ban the state and its subdivisions from restricting digital asset ownership.
It also blocks licensing, permits, or discriminatory taxes based solely on using digital assets. Additionally, it prevents state agencies from endorsing or supporting a federal CBDC. The bill further safeguards blockchain users by allowing node operations, asset transfers, and staking. It also shields validators and node operators from civil liability.
Two Crypto Bills Aimed at Using Old Oil Sites and Bitcoin Mining
Meanwhile HB 4512 and HB 4513 addresses utilizing old oil sites within the state and bitcoin mining.
Representative Mike McFall and a bipartisan team introduced HB 4512 to launch a Bitcoin mining program using abandoned oil and gas wells. The program grants temporary energy-use rights to participants who agree to plug wells and restore sites. It also requires them to handle any necessary response actions.
The bill directs the supervisor of wells to find eligible sites and publish detailed evaluations. Furthermore, the supervisor must oversee a competitive bidding process. Chosen participants must offer financial guarantees and submit environmental and production data. They are also required to file annual reports.
Finally, HB 4513 plans to amend Michigan’s Income Tax Act to exempt income from the proposed Bitcoin mining program. It clearly defines exempt income and aligns it with HB 4512’s framework. This provides clarity and incentives for individuals and businesses involved in the bitcoin mining initiative.
What Does These Bills Mean for Michigan’s Cryptocurrency Environment?
Michigan’s recent introduction of four crypto-focused bills could significantly reshape the state’s cryptocurrency landscape, particularly impacting the iGaming and crypto casino sectors.
HB 4510 permits the state treasurer to invest retirement funds in cryptocurrencies with a market capitalization of at least $250 billion, such as Bitcoin and Ethereum, through regulated exchange-traded products.
HB 4511 aims to protect digital asset holders by prohibiting state agencies from supporting or promoting a U.S. central bank digital currency (CBDC). This move could foster a more favorable environment for crypto casinos and iGaming platforms by reducing potential regulatory hurdles.
HB 4512 introduces a Bitcoin mining partnership program targeting abandoned oil and gas wells, offering temporary usage rights in exchange for site restoration responsibilities. This initiative could attract crypto mining operations, further integrating cryptocurrency into the state’s economy.
Lastly, HB 4513 proposes amending Michigan’s Income Tax Act to exempt income earned through the Bitcoin mining program from state income tax, providing financial incentives for participants.
Collectively, these crypto bills signal Michigan’s commitment to embracing cryptocurrency, potentially positioning the state as a leader in crypto-friendly policies that could benefit the iGaming and crypto casino industries.