Michigan Proposes New Rules for Retirement Funds to Dip into Crypto

Michigan is testing waters to let retirement funds invest in cryptocurrency—but under strict conditions. A pending bill, House Bill 4510, wants to change rules for public employee retirement systems, allowing them to add digital assets to investment portfolios. So far, the bill hasn’t become law, and the latest update shows it’s still being reviewed. The bill targets big, established cryptocurrencies like Bitcoin only. It sets a size requirement: any crypto chosen must have a market value of at least $250 billion over the past year. This rule aims to limit risk by excluding smaller, more volatile coins. But here’s the catch—retirement funds wouldn’t buy crypto directly. Instead, they’d invest through regulated funds that trade on U. S. exchanges. That means no buying random tokens. Only approved, official investment products will be allowed. The idea isn’t to push every retirement plan to buy crypto. The bill gives fiduciaries the option. They can decide whether to invest in crypto without forcing change. Still, if they do take the step, they can put in up to 5% of the fund’s total value. This isn’t a free for all. It comes with strict oversight and existing rules already in place for retirement investments.If passed, Michigan would join a few states opening the door to crypto in public pensions. Unlike bills aimed at crypto businesses or personal investors, this one focuses only on retirement funds. It doesn’t create new licenses or rules for crypto companies. The goal isn’t to promote crypto broadly—but to give fiduciaries one more option when managing retirement money. The bill moved through several stages since May 2025. It started in one committee, then passed on to another and finally got updated wording in December 2025. Most recently, in March 2026, legislators revised it further and prepared it for a vote. But there’s no set date for when—or if—it will become law. Changes can still happen before final approval. Fiscal experts say the bill itself won’t cost the state money directly. But the real impact depends on future investment choices and market conditions at the time. Will fiduciaries actually use this option? That’s still unclear. The market could swing up or down by the time a fund considers buying in. And even with the 5% limit, risk remains—especially with crypto’s wild price swings.