Cryptocurrency Legislation Landscape in Michigan in 2024

As of 2024, Michigan has undertaken several initiatives to regulate and embrace cryptocurrency and blockchain technology, reflecting an evolving and adaptive approach to these emerging digital assets.

One of the pivotal steps in Michigan’s cryptocurrency legislation is the establishment of the “Blockchain and Cryptocurrency Commission.” This commission, created under the “Blockchain and Cryptocurrency Commission Act,” is a significant move by the state to foster the expansion of the blockchain and cryptocurrency industries. The commission is responsible for investigating blockchain and cryptocurrency technologies and developing a master plan of recommendations for their growth within the state. It is comprised of various members, including state officials, industry representatives, and appointed individuals from academia and the cryptocurrency sector. This diverse composition aims to provide a comprehensive and multifaceted perspective on blockchain and cryptocurrency in Michigan.

In addition to the commission, Michigan’s legislative framework includes amendments made to the Michigan Penal Code in recent years. These amendments integrate direct and indirect references to cryptocurrency and distributed ledger technology, particularly in the context of embezzlement, money laundering, and credit fraud. This legislative action demonstrates Michigan’s effort to adapt its legal system to the challenges and opportunities presented by digital currencies.

Michigan’s Money Transmitter Act, while not explicitly mentioning “virtual currencies,” does include the concept of “monetary value.” However, the state has not issued further guidance on how this act applies to virtual currencies. This indicates a potential area for future legislative development, as the state grapples with the nuances of regulating these new forms of value exchange.

Moreover, the state’s approach towards cryptocurrency taxation and regulation remains closely aligned with federal guidelines, which treat digital currencies as property rather than traditional currency. This treatment mirrors the approach towards other assets like stocks or precious metals for tax purposes.

Overall, Michigan’s current stance on cryptocurrency and blockchain indicates a proactive and exploratory approach, focusing on understanding and integrating these technologies into the state’s economic and regulatory fabric. The establishment of the Blockchain and Cryptocurrency Commission, along with amendments to the state’s penal code, positions Michigan as a state attentive to the potentials and challenges of the digital asset revolution.

Sources:

Freeman Law – Michigan Blockchain Legislation Status

Michigan Legislature – Senate Bill 888