Something interesting is unfolding in Michigan right now—and if you’re deep in the crypto trenches like we are

This week, four new crypto-related bills—House Bills 4510 through 4513—hit the Michigan legislature like a coordinated drop.

Four new crypto bills have been introduced in the Michigan House of Representatives this week, aiming to provide the state with a competitive edge in the emerging digital economy. The bills, ranging from Bitcoin mining partnerships to cryptocurrency investments in pension funds, could have a significant impact on both the government and the private sector.

The bills, which were all sponsored by Rep. Matt Stevens (R-Bennington Twp.) and introduced on Wednesday, follow a fifth crypto bill introduced earlier this year.

Together, the bills demonstrate a broader strategy by the Michigan legislature to engage with Web3 technologies and integrate them into the state’s economic framework.

Here’s a closer look at each bill:

House Bill 4510: Allowing Public Pension Funds to Hold Crypto

This bill would permit the Michigan Public Employee Retirement System to invest in digital assets. However, the crypto must meet specific criteria, including an average market cap of $250 billion or more over the previous three months.

Only two cryptos currently meet this market cap requirement: Bitcoin and Ethereum.

The bill also specifies that the investments must be in exchange-traded products issued by registered investment companies.

HB 4510 would also limit the total value of these investments to 5% of the retirement system’s market value.

If passed, Michigan might become the first state in the U.S. to put BTC and ETH on the books for its retirement funds.

House Bill 4511: The Anti-CBDC and Pro-Freedom Bill

HB 4511 stands against a federal CBDC, stating that the state will not support or advocate for it in any form, including through press releases, endorsements, or participation in joint ventures.

The bill further emphasizes the freedom of individuals and businesses to hold, use, and operate crypto nodes within the state, without any licensing, permitting, or discriminatory taxation based on crypto use.

This bill showcases Michigan’s commitment to a decentralized and autonomous crypto ecosystem.

House Bill 4512: A Partnership Program for Bitcoin Miners and Abandoned Oil Wells

To encourage energy efficiency and environmental protection, HB 4512 proposes a partnership program with Bitcoin miners who are interested in setting up operations in Michigan.

The miners would be assigned abandoned oil and gas wells across the state, which they would then be responsible for plugging and cleaning up.

Miners would also be required to follow a checklist of environmental obligations and pay applicable fees.

The bill includes a bidding system for the partnership slots and reporting requirements for the miners, with annual oversight by the Department of Environmental, Great Lakes, and Energy.

This bill aims to create economic opportunity from environmental liabilities while aligning the incentives of the energy and blockchain industries.

House Bill 4513: Exemptions from State Income Tax on Mining Profits

HB 4513 ties into the Bitcoin mining partnership program and exempts earnings from it from state income tax.

The bill clarifies how this exemption applies to both individuals and businesses participating in the partnership program.

This measure is designed to make Michigan an even more attractive destination for miners and foster broader participation in the crypto ecosystem within the state.

The bills will now be referred to the appropriate House committee for further consideration.