Michigan State Rep. Matt Maddock has launched laws that will enable categorized state civil service staff to obtain their wages in Bitcoin or different qualifying digital belongings, marking what supporters describe as a first-of-its-kind effort to combine Bitcoin into state payroll programs.
The proposal would amend Michigan’s Fee of Wages and Fringe Advantages Act (1978 PA 390) by including a brand new part allowing salaried state staff, starting Jan. 1, 2027, to select from three strategies of compensation: U.S. forex paid in particular person on the Division of Treasury in Lansing, direct deposit or digital switch to a monetary establishment, or cost in a digital forex of the worker’s selection.
Beneath the invoice that was shared with Bitcoin Journal, the state can be required to supply no less than six digital forex choices, with Bitcoin mandated as certainly one of them.
The laws additionally prohibits the state from providing any state-owned or state-controlled digital forex wherein issuance or provide is managed by a nationwide authorities or central financial institution — a provision that successfully bars using central financial institution digital currencies (CBDCs).
Maddock, a Republican from Milford and present vice chair of the Home Appropriations Committee, mentioned the measure is aimed toward increasing monetary selection for public staff and positioning Michigan as a pacesetter in digital asset adoption.
Professional-bitcoin laws popping out of Michigan
The invoice was developed in partnership with the Michigan Bitcoin Commerce Council, a statewide advocacy group targeted on Bitcoin schooling and coverage.
If enacted, Michigan would change into one of many first states to formally authorize bitcoin as a wage cost possibility for presidency staff.
Whereas a number of private-sector employers throughout the U.S. have experimented with paying staff in digital belongings, state-level payroll integration stays uncommon.
The wage proposal is a part of a broader package deal of pro-Bitcoin laws advancing in Lansing. Companion measures embrace HB 4511, which might set up a digital asset invoice of rights prohibiting state and native governments from banning Bitcoin possession or use; HB 4510, making a framework for potential pension fund funding in large-cap digital belongings; and HB 4512 and HB 4513, which search to incentivize Bitcoin mining operations powered by deserted oil and pure fuel wells.
The wage invoice requires the state to honor an worker’s chosen cost methodology and units parameters for digital asset choices however doesn’t element the operational mechanics of conversion, custody or volatility administration.
These implementation questions would possible fall to the Division of Treasury and different administrative businesses if the measure turns into legislation.
Maddock mentioned he’s working to safe bipartisan co-sponsors forward of the invoice’s formal numbering and committee referral.
Final week, Missouri Home Invoice 2080, launched by Consultant Ben Keathley, was referred to the Home Commerce Committee, proposing the creation of a state-managed Bitcoin Strategic Reserve Fund that will enable the treasurer to accumulate, custody, and maintain bitcoin in chilly storage for no less than 5 years below outlined statutory pointers.
In Might 2025, New Hampshire empowered the state treasurer to allocate as much as 10% of state funds into digital belongings or treasured metals with a market capitalization exceeding $500 billion.
Since then, different states — together with Arizona and Texas — have adopted go well with, advancing or establishing comparable bitcoin reserve frameworks.