Michigan Moves Toward Crypto-Friendly Future as U.S. Lawmakers Advance Blockchain Regulation

Momentum for cryptocurrency regulation is building across the United States, with new state-level initiatives and renewed efforts in Congress signaling a more structured approach to digital assets. This week, Michigan introduced a series of crypto-focused bills that combine financial innovation with environmental strategy, while federal lawmakers push to clarify the rules of the road for blockchain technology developers.

Michigan lawmakers have unveiled four new bills that aim to position the state as a leader in responsible crypto adoption.

• House Bill 4510 would allow Michigan’s public pension funds to invest in cryptocurrencies—but only through heavily regulated vehicles like exchange-traded funds (ETFs). This would give retirement fund managers controlled exposure to digital assets such as Bitcoin, provided those products meet specific oversight and market cap requirements.
• House Bill 4511 takes a strong stance on digital asset rights, barring state and local governments from imposing discriminatory taxes or licensing requirements on crypto solely because of its digital format. It also prohibits any Michigan agency from advocating for a U.S. central bank digital currency (CBDC), reflecting ongoing concerns around privacy and control.
• House Bill 4512 proposes an innovative partnership between Bitcoin miners and the state’s environmental efforts. Under this bill, miners could use abandoned oil and gas wells to power operations—as long as they take responsibility for environmental remediation.
• House Bill 4513 sweetens the deal by offering income tax deductions to miners who take part in orphan well cleanup projects, effectively merging energy reuse with ecological restoration.

These bills mark a notable shift in how states can integrate crypto into broader public policy—linking financial technology with environmental rehabilitation and regulatory modernization.

At the national level, Representatives Tom Emmer and Ritchie Torres have reintroduced the Blockchain Regulatory Certainty Act, a proposal aimed at removing legal gray areas for blockchain developers and service providers.

The bill seeks to exempt non-custodial blockchain participants—those who create technology or facilitate peer-to-peer services without holding customer funds—from being classified as “money transmitters.” Only platforms and services that directly hold or move users’ assets would fall under that category.

This legislative clarity could offer significant relief to developers and innovators concerned about regulatory overreach. Advocates argue that reducing legal risk will help keep blockchain talent and infrastructure in the U.S., instead of driving it offshore.