In a move that signals growing mainstream acceptance of digital assets, Michigan legislators have introduced a groundbreaking package of bills aimed at creating a clear, supportive framework for crypto custody and investment. For institutions navigating regulatory uncertainty, these developments offer both clarity and opportunity.
A Four-Bill Crypto Roadmap
Michigan’s latest crypto push spans both enacted and proposed legislation:
- House Bill 4511: The Cryptocurrency Bill of Rights (Enacted April 2024) This bill protects the ownership and use of digital assets, ensuring they are treated similarly to traditional currency. It also affirms the right to run cryptocurrency infrastructure within the state, laying the legal foundation for blockchain activity.
- House Bill 4510: State Investment in Cryptocurrency (Introduced May 2025, pending) A pivotal bill for institutions, HB 4510 would establish a formal process for the Michigan state treasurer to invest in high-cap Bitcoin and other established cryptocurrencies. By limiting investments to assets with a $250B+ market cap, the legislation provides a safeguard against volatility while signaling serious intent.
- House Bill 4512: Abandoned Well Mining Access (Enacted April 2024) This bill permits Bitcoin miners to utilize abandoned oil and natural gas wells owned by the state for electricity generation. In exchange, miners are required to cap the wells after use, addressing environmental concerns.
- House Bill 4513: Mining Tax Incentive (Introduced May 2025, pending) This proposal would exempt Bitcoin mined through the HB 4512 program from certain state taxes, encouraging responsible remediation and crypto innovation.
Custody in Focus: A Door Opens for Institutional Engagement
While none of these bills directly legislate crypto custody providers, their implications are clear: the state is preparing for broader digital asset adoption, and custody is a critical part of that ecosystem. Custody infrastructure will need to evolve in parallel to support:
- Secure, regulatory-compliant storage for state investments
- Institutional inflows into Bitcoin and other major digital assets
- Responsible environmental integration of mining activities
A Strategic Opportunity for Custody Providers
With the state treasury poised to allocate funds to crypto and environmental incentives attracting mining operators, Michigan may become a regional hub for institutional-grade custody. Providers with qualified custodian status and scalable infrastructure should be watching closely.
Why This Matters to Satoshi Safe
At Satoshi Safe, we view this legislative package as a signal of what’s to come. As more states begin to embrace digital assets through formal investment policies and regulatory protections, custody providers must prepare for heightened scrutiny and greater demand.
Our mission is to make custody decisions transparent and informed. Michigan’s approach demonstrates the kind of legislative foresight we believe will define the next wave of institutional adoption.
Stay tuned as we continue to track regulatory momentum across key states.
Sources and Further Reading:
- Michigan House Republicans - Cryptocurrency Legislative Package: https://gophouse.org/posts/michigan-to-the-moon-lawmakers-introduce-bipartisan-cryptocurrency-legislation
- LegiScan - House Bill 4087 (Bitcoin Reserve and Custody): https://legiscan.com/MI/text/HB4087/2025
- Michigan Legislature - House Bill 6147 (November 2024 Crypto Regulation Proposal): https://www.legislature.mi.gov/documents/2023-2024/billintroduced/House/pdf/2024-HIB-6147.pdf
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