Michigan (MI): Bitcoin and virtual-currency law

Bitcoin Research — Law, Regulation, Markets & Origins (2026)

Legislation

2026-10-09

Document text

Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.

Michigan (MI): Bitcoin and virtual-currency law

Field Value
Jurisdiction US state: Michigan
Date checked 2026-10-09
Main regulator Department of Insurance and Financial Services (DIFS)
Money-transmitter law Money Transmission Services Act, 2006 PA 250, MCL 487.1001 et seq. CSBS: no MTMA enactment (CSBS)
Virtual currency covered? Statute silent. "Money transmission services" means "selling or issuing payment instruments or closed-loop prepaid access ... or receiving money or monetary value for transmission". There is no virtual-currency language (MCL archive, April 2026, saved). The DIFS money-transmission FAQ also says nothing on virtual currency.
UMSA? / URVCBA? No / No
Crypto ATM / kiosk law None statewide. Pending 2026 bills would either regulate kiosks (HB 5469 + HB 5470) or ban them (HB 5986 + HB 5987; SB 980). The City of Jackson banned kiosks by ordinance, effective 2026-10-22, with 90 days to remove machines.
Pension bitcoin exposure The State of Michigan Retirement System (SMRS) holds spot-bitcoin ETF shares, for example ARK's ARKB, according to 13F filings reported by crypto media.

Summary

Michigan has no crypto-specific statute in force. Its Legislature is full-time and the 2025–26 session runs through 2026-12-31, so many bitcoin bills are still technically pending:

  • Reserve and pension bills:
  • a strategic bitcoin reserve with up to 10% of the general fund and the rainy-day fund (HB 4087);
  • crypto investment by retirement funds (HB 4510);
  • a "right to hold digital assets" and anti-CBDC bill (HB 4511).
  • HB 4510 and HB 4511 were placed on third reading in the House on 2026-03-11.
  • Mining bills: bitcoin mining on orphaned oil and gas wells (HB 4512), an income-tax deduction for bitcoin-mining income (HB 4513), and mining as of right in industrial zones (HB 4085).
  • Kiosk bills: regulation (HB 5469 and HB 5470) versus a full ban (HB 5986 and HB 5987; SB 980). Detroit-area and Jackson officials are pushing for action. A USA Today and Detroit Free Press column (2026-10-08) asked "Why some say Michigan should ban bitcoin ATMs".

1. Money-transmitter licensing and virtual currency

  • MCL 487.1002(c): "'Money transmission services' means selling or issuing payment instruments or closed-loop prepaid access or prepaid access devices or vehicles or receiving money or monetary value for transmission" (MCL Act 250 of 2006, archive April 2026, saved).
  • No virtual-currency language in the act or in the DIFS FAQ (DIFS FAQ). Whether the DIFS licenses virtual-currency exchanges is unverified.
  • HB 5470 (2026) would bring kiosk operators under the act's licensing and surety-bond rules. It is tie-barred to HB 5469.

2. Virtual-currency-specific statutes and guidance

None enacted. See section 6.

3. Crypto ATM / kiosk law

No state law. AARP lists Michigan as "Bill introduced" (AARP data).

  • HB 5469 (Rep. Joseph Aragona), Virtual Currency Kiosk Consumer Protection Act, with HB 5470 (Rep. Mike McFall):
  • Disclosures, receipts, blockchain analytics, anti-fraud policies, compliance officers, and quarterly location reports to the DIFS.
  • Would preempt local kiosk ordinances.
  • Fines of up to $1,000 per knowing and willful violation.
  • Introduced 2026-01-22 (Duane Morris summary; HB 5469 text saved).
  • HB 5986 (Rep. Koleszar and others), "cryptocurrency kiosk prohibition act", with HB 5987 (lottery-licence suspension for hosting kiosks). Introduced 2026-05-19 and referred to Regulatory Reform (text saved).
  • SB 980 (2026): Senate kiosk ban. Referred to Finance, Insurance, and Consumer Protection on 2026-05-19 (text saved).
  • Local: the City of Jackson banned kiosks. The ban is effective 2026-10-22 with 90 days to remove machines, and cashier-assisted crypto purchases are also barred (ATM Marketplace). Grosse Pointe Farms has sought a crackdown (Yahoo headline).

4. Tax treatment

  • No Michigan Treasury crypto guidance was retrieved (gap).
  • HB 4513 would create an income-tax deduction for income attributable to bitcoin mining under a "bitcoin program" (pending).
  • HB 4087 would let the state accept taxes and fees in cryptocurrency, transferred to the general fund (pending).

5. Notable enforcement

  • None retrieved (gap).
  • Pension investment (not enforcement): SMRS increased its ARKB position to 300,000 shares, about $11.3M, roughly 0.03% of $79B AUM (Yahoo/CoinDesk-style report; 13F not retrieved). A 2024 Reuters report put an earlier ETF purchase at $6.6M.

6. Bills, 103rd Legislature (2025–2026), all pending until 2026-12-31 unless acted on

Statuses come from legislature.mi.gov, checked 2026-10-09.

Bill Subject Last action
HB 4087 (Rep. Posthumus) Strategic bitcoin reserve: the Treasurer may invest up to 10% of the general fund and the budget stabilization fund in cryptocurrency; accept crypto for taxes and fees; custody through secure custody, a qualified custodian or an ETP; may lend crypto Re-referred to Communications and Technology (2026-03-19); cosponsor change 2026-07-01
HB 4510 Retirement funds may invest in cryptocurrency Placed on third reading, 2026-03-11
HB 4511 (Rep. Posthumus and others) Bars bans, licensing or other impairments on holding digital assets; bars state support for a US CBDC; protects nodes and transfers Placed on third reading, 2026-03-11
HB 4512 Orphaned-well partnership program and fund for bitcoin mining Re-referred (2026-03-19)
HB 4513 Income-tax deduction for bitcoin-mining income Re-referred (2026-03-19)
HB 4085 Allow crypto mining in industrial zones Re-referred; cosponsor change 2026-07-01
HB 5469 / HB 5470 Kiosk consumer protection and licensing Introduced 2026-01-22
HB 5986 / HB 5987 Kiosk prohibition Introduced 2026-05-19
SB 980 Kiosk prohibition Referred 2026-05-19
HB 5882 Requirements for local moratoria on large data centers or crypto mining Introduced 2026-04-23

7. Contested and fringe claims

  • Bitcoin mining on orphaned wells (HB 4512). Supporters claim mining can use stranded methane and fund well plugging. Environmental critics dispute the climate benefit. No hearing record was retrieved; both claims are contested.
  • Anti-CBDC clauses (HB 4511). These address a currency the Federal Reserve does not issue. They are largely symbolic (our assessment).
  • Ban versus preemptive regulation. HB 5469 would preempt local bans like Jackson's, while HB 5986 and SB 980 would ban kiosks statewide. The industry generally favours regulation with preemption; local officials favour bans.

Saved sources (sources/states/mi/)

See sources/states/mi/INDEX.md.

Gaps

  • DIFS position on virtual-currency licensing.
  • Michigan Treasury tax guidance.
  • SMRS's own filings.
  • Committee hearing records.