A plan from State Representative Bill G. Schuette that diversifies how the state can invest retirement funds and will make Michigan a leader in emerging technologies was recently advanced by the House Economic Competitiveness Committee.

House Bill 4510 allows the state to invest retirement funds into digital currencies.

“Over the last decade, the market for cryptocurrencies has grown dramatically,” Schuette said. “This has created an opportunity for Michigan to take the lead on cryptocurrency policy where it makes sense and benefits our state.”

Michigan made headlines last year with its initial cryptocurrency investment of $6.6 million in Bitcoin. As of July, the state has invested roughly $45 million in cryptocurrencies. The Michigan Treasury has reported that the state has already recouped its initial investment and earned an additional $39 million solely from cryptocurrency.

Schuette’s proposal comes with needed guardrails. Any cryptocurrency being invested in must have a market capitalization of at least $250 billion averaged over the previous calendar year. A maximum of 5% of a system’s assets can be invested in cryptocurrency, and the bill requires any digital asset held by the state to be in the form of an exchange-traded product issued by a registered investment company.

HB 4510 now moves to the full House for consideration.