Crypto Innovation and Preserving Financial Privacy: Jake Morabito on Detroit’s Morning Answer
Michigan can really use this as an opportunity to fight back against excessive government overreach and help protect financial privacy.
In a recent interview, Jake Morabito, ALEC Communications and Technology Senior Task Force Director, spoke with host John Anthony on Detroit’s Morning Answer about his recent testimony before the Michigan House of Representatives about House Bills 4510 and 4511, where he discussed how adopting a forward-leaning but cautious approach to cryptocurrency policy could position Michigan as a potential leader among states modernizing public investment and financial autonomy.
Speaking to a committee considering two landmark bills—House Bills 4510 and 4511—Morabito argued that “states like Michigan can really use this as an opportunity to fight back against excessive government overreach and help protect financial privacy.”
The first proposal, HB 4510, would authorize Michigan’s public retirement systems to allocate up to 5% of their portfolios to Bitcoin and Ethereum via exchange-traded products (ETPs). “Whether or not you own cryptocurrency yourself, it’s something legislators are going to have to adapt to in this new reality of digital payments,” Morabito said.
He emphasized the bill’s safeguards, noting that “there’s a certain percentage cap, usually maybe it’s 5% or 2% so you aren’t having the entire state system being converted over to Bitcoin. Also in Michigan, it’s the threshold would essentially only allow Bitcoin and Ethereum because they have such a high market capitalization.”
Morabito positioned the proposed investments as a hedge against inflation, stating plainly: “If a safe investment grows at 1%, and inflation is 4%, that means taxpayers are losing money.”
At the heart of the second proposal, HB 4511, is a preemptive ban on any state acceptance or issuance of a Central Bank Digital Currency (CBDC). “A CBDC transforms our current cash system into a digital dollar run through a cryptocurrency,” Morabito said. “That comes with unprecedented visibility into your specific transactions—some who are very concerned about their personal privacy and invasion of privacy. They’re concerned about the government being granted this much power.”
While federal officials under the Biden administration have publicly stated they are not pursuing a CBDC, Morabito pointed out that states like Michigan have the authority—and obligation—to draw the line. “A lot of these states, like Michigan or Texas or Arizona or New Hampshire, they’re not going to wait for cues from Congress.”
Critics of HB 4510 have expressed concern about the volatility of digital assets, but Morabito countered with measured realism: “There’s no such thing as a foolproof investment. As we’ve seen, the trajectory goes up and down but there are some guardrails in place, in some provisions.”
Summarizing the situations, Anthony said plainly: “Taken together, HB 4510 and HB 4511 send a clear message: Michigan wants financial freedom, not federal control.”
In conclusion, Morabito reiterated: “Michigan can really use this as an opportunity to fight back against excessive government overreach and help protect financial privacy.”