Michigan took the next step for the strategic crypto reserve bill, which moved to the second reading on Thursday.
Michigan House Bill 4087, which will allow the state to invest in crypto assets under specific conditions, has moved to second reading and specified on the government operation committee.
The law is changing the Michigan Management and Budget Act to promote guidelines for a strategic crypto reserve, even if it does not mention Bitcoin (Btc) specifically.
It came in the middle of a recent destruction of developments around Bitcoin-level bitcoin reserves.
The bill is introduced Through Republican representatives Bryan Posthumus and Ron Robinson in February and allowed the state manager to invest up to 10% of funds from Michigan’s “countercyclical budget” and “economic stabilization funds” in cryptocurrency.
The bill sets that the state should handle crypto properties through one of the three approved methods: a “secure conservation solution,” a qualified guardian such as a bank, confidence company, or state-controlled company, or products exchanged exchanges from registered investment companies.
The state can also loan the cryptocurrency to produce additional returns if it does not increase the financial risk.
Crypto Reserve Bill is not limited to Bitcoin
The bill also provides detailed technical security requirements for precautionary solutions, including exclusive government control of private keys, end-to-end encryption, no access to smartphone, geographic diversified secure data centers, multiparty transaction permission, and regular security audit.
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It does not specify which digital assets can be used for strategic reserves beyond this criterion:
“The digital currency in which the techniques are used to adjust the generation of currency units and verify the transfer of funds, and operates independently of a central bank.”
Michigan Bitcoin Trade Council in the opposition
Michigan Bitcoin Trade Council has oppose the bill Because “there is no market capitalization number listed in the law that avoids other cryptocurrencies other than Bitcoin that the state can buy.”
The state Bitcoin The advocacy team says that allowing other crypto assets to be part of a strategic crypto reserves “creates unnecessary risk,” like all other cryptocurrencies except Bitcoin are “centralized and subject to great risk.”
Only three states passed the law
Michigan Now join Massachusetts and Ohio with approach to crypto reserves bills made it to the Committee stage, According to in the laws of bitcoin.
Meanwhile, only the New Hampshire, Arizona, and Texas has enforced a law that provides state administrators to invest in Bitcoin and Crypto assets.
Strategic Bitcoin Reserve Bills were rejected in Montana, North Dakota, South Dakota, Wyoming and Pennsylvania, and there were 17 other states with pending law, According to In the Bitcoin Reserve Monitor.
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