WeVote
Log In

Bill

Bill

HB 4511

State finance: other; limitations on holding a digital asset; prohibit. Creates new act.

2025-2026 Regular Session Introduced by Joe Aragona and 7 co-sponsors

Prohibits Michigan/state actions that ban, tax, or require permits for holding, transferring, or staking digital assets, and bans CBDC advocacy by agencies.

referred to second reading
#statefinance:other
0
WeVote Research Nonpartisan
Bill Summary · HB 4511

Summary — HB 4511 (Posthumus) — State finance: limitations on holding a digital asset; prohibit

Purpose

HB 4511 would create a new act that limits state and local government authority over "digital assets" by prohibiting bans, special permitting or licensing requirements, extra taxes tied to use as payment, and prohibitions on certain blockchain activities. The bill also forbids state agencies from advocating for a U.S. central bank digital currency (CBDC) and provides limited civil-liability protection for certain node/mining/staking activities.

Key provisions

  • Prohibitions on state and local governments (subject to Michigan Penal Code provisions):
    • May not ban the holding (possession, including electronic) of digital assets.
    • May not require a permit or license to hold digital assets.
    • May not impose other impairments on holding digital assets.
    • May not impose any additional tax, withholding, assessment, or charge based solely on using a digital asset as a method of payment. (Does not prevent taxation that would apply if the transaction occurred in U.S. legal tender.)
  • Prohibitions on restrictions of certain blockchain activities:
    • May not prohibit operation of a node connecting to a blockchain protocol (or layered protocols).
    • May not prohibit transfers of digital assets on a blockchain protocol.
    • May not prohibit participation in staking on a blockchain protocol.
  • Immunity from civil liability:
    • A person who only validates transactions, operates node(s), or provides digital-asset mining or staking services is not civilly liable for those activities.
  • Prohibition on advocacy/support by state agencies:
    • State agencies/departments may not advocate for or support (including formal statements) testing, adoption, or implementation of a U.S. CBDC.
  • Definitions provided in statute for terms including: digital asset (virtual currency, cryptocurrencies, stablecoins), blockchain, blockchain protocol, smart contract, node, staking, consensus mechanism, digital asset mining, and holding.

Who is affected

  • Individuals and businesses that hold, transfer, mine, stake, or accept digital assets in Michigan.
  • State and local governmental bodies (limited in their ability to ban, tax, or require permits for the above activities).
  • State agencies (prohibited from advocating for a U.S. CBDC).

Fiscal impact

  • House Fiscal Agency estimates no direct fiscal impact to state or local governments.

Procedural status (selected milestones)

  • Filed: March 12, 2025. Sponsor: Rep. Bryan Posthumus (with several co-sponsors).
  • Introduced in House: May 21, 2025. Multiple committee actions and substitute versions April–May 2025.
  • Sept. 18, 2025: Rule suspended; motion to discharge committee approved; referred to Committee on Economic Competitiveness. Current status: referred to Committee on Economic Competitiveness.

Notes / scope considerations

  • The bill is subject to Michigan Penal Code provisions and preserves taxation parity with U.S. legal tender.
  • It focuses on prohibiting certain government actions rather than creating a licensing regime or affirmative regulatory framework for exchanges, custodians, or securities-related treatment of tokens.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.