The draft status of the Michigan State on cryptoreseria reached the stage of work in the Commission.
Stan Michigan wants to have a crypto reservoir
The draft Act Michigan House Bill 4087, which allowed it to invest in cryptocurrency assets under certain conditions, went to the second reading and was directed to the government activities committee.
The Act changes the Michigan Management and Budget Act to establish guidelines regarding the creation of strategic cryptocurrency reserves. The document does not specifically mention Bitcoin, but probably this cryptocurrency would be the core of the reserve.
The state treasurer will be able to invest in cryptocurrencies up to 10% of the “anti -clip budget” and “economic stabilization fund”. The condition can also borrow cryptocurrencies to generate additional profits, unless this increases the financial risk.
Digital assets will have to be stored using a “secure deposit solution”, a qualified depositary, such as a bank, a trust company or a company regulated by a state, or stock market products from registered investment companies. The Act also specifies the detailed technical requirements for security for deposit solutions (exclusive control of the authorities over private keys, encryption, diversified, secure data centers, transaction authorization by a few pages and regular security audits).
The act was prepared by the Republican Congressmen of Bryan Posthumus and Ron Robinson in February.
Not only Bitcoin
It has not been determined what digital assets can be added to strategic reserves. The definition contained in the Act is:
Digital currency in which encryption techniques are used to regulate the generation of foreign currency units and verify the transfer of funds, and which operates regardless of the central bank.
Some say that enabling other cryptocurrencies “creates an unnecessary risk” because all other cryptocurrencies outside Bitcoin are “centralized and exposed to high risk.”
Michigan joined Massachusetts and Ohio – and there cryptocurrency laws are analyzed in the state committees of congresses. For now, only New Hampshire, Arizona and Texas have adopted regulations that allow state treasures to invest in BTC and Altcoin. In Montana, North Dakota, South Dakota, Wyoming and Pennsylvania, this type of regulations were rejected.
