Legislative efforts in the United States are gaining momentum as both state and federal lawmakers take significant steps to bring greater clarity and structure to cryptocurrency regulation. In Michigan, a package of four proposed bills is moving through the legislative process, targeting digital asset rights, environmental reform, and public sector investment in crypto. Simultaneously, lawmakers in Washington, D.C. have reintroduced a bill aimed at clarifying the obligations of blockchain developers and non-custodial service providers under federal law.
These legislative developments reflect a broader shift in political intent to accommodate digital innovation while ensuring legal safeguards and regulatory accountability. The overarching goal appears to be the establishment of a coherent policy framework that enables growth in the decentralized finance sector without compromising consumer protection or market integrity.
Michigan Embraces Regulated Crypto Exposure and Green Mining
Among the proposed legislation in Michigan, House Bill 4510 has emerged as a pivotal component. This bill seeks to permit state-managed pension funds to invest in cryptocurrencies, but only through regulated financial instruments like exchange-traded funds (ETFs). These investment vehicles would be subject to strict requirements, including market capitalization thresholds and regulatory oversight by financial authorities. The proposal is being viewed as a cautious but progressive step to offer inflation-resistant and diversified assets to public retirement systems.
In a novel intersection of environmental remediation and digital finance, Michigan legislators have also introduced House Bills 4512 and 4513. These measures propose an energy reuse initiative involving decommissioned oil and gas wells, which would be repurposed to power Bitcoin mining operations. Participation in the program would require miners to undertake site remediation and adhere to environmental reporting protocols. In return, qualifying miners would be eligible for income tax deductions.
This approach aims to position Michigan as a forward-thinking state that encourages responsible crypto mining while addressing legacy pollution. The proposed bills explicitly focus on Bitcoin and utilize the concept of “orphan well programs” as a mechanism to align economic incentives with environmental goals.
Digital Rights and CBDC Restrictions Take Center Stage
Another bill in the Michigan package, House Bill 4511, is designed to protect the rights of cryptocurrency users within the state. It aims to prevent local and state authorities from implementing discriminatory regulations, licensing requirements, or special taxes that target digital assets solely based on their digital format. The bill also seeks to prohibit any state agency from supporting or promoting central bank digital currencies (CBDCs), effectively creating a legal distinction between decentralized cryptocurrencies and government-issued digital money.
This proposal has been interpreted as a robust stance in defense of decentralized finance, offering legal protections to miners, node operators, and digital asset holders from arbitrary regulatory targeting. If passed, Michigan’s legal framework could serve as a model for other states considering similar protections.
Federal Legislation Targets Developer Clarity
At the federal level, efforts to bring regulatory certainty to the blockchain industry have also resumed. U.S. Representatives Tom Emmer and Ritchie Torres have reintroduced the Blockchain Regulatory Certainty Act. The bill is intended to delineate which entities should be classified as “money transmitters” under U.S. law. Specifically, it aims to exempt blockchain developers and non-custodial service providers—those who do not directly control consumer funds—from financial licensing obligations.
The bill is being promoted as a safeguard against overregulation and an essential step to prevent the migration of blockchain talent and innovation to jurisdictions with more favorable policies. Lawmakers involved in the bill have emphasized the importance of distinguishing between those who build blockchain protocols or offer access interfaces and those who actually manage or store digital assets on behalf of users.
The federal measure is seen as a response to longstanding concerns about regulatory uncertainty and enforcement inconsistency in the blockchain space. By establishing a clear legal boundary between developers and custodians, the bill aims to foster innovation while maintaining appropriate oversight where consumer assets are involved.
Together, these state and federal initiatives mark a significant effort to define the future of cryptocurrency in the United States, balancing innovation with regulatory responsibility.
