The proposed bill aims to protect the holding and operation of digital assets within the state of Michigan by prohibiting any state or local government from banning, requiring permits or licenses, or imposing other restrictions on digital assets. Specifically, it prevents the imposition of additional taxes or charges solely based on the use of digital assets as payment. Furthermore, the bill explicitly prohibits state agencies from advocating for or supporting the implementation of a central bank digital currency by the United States government.

Additionally, the bill ensures that individuals and entities are not civilly liable for activities related to digital asset mining, operating nodes on blockchain networks, or providing staking services. It defines key terms such as "digital asset," "blockchain," and "smart contract," to clarify the scope of the legislation. Overall, the bill seeks to foster a supportive environment for digital asset operations while safeguarding against potential governmental overreach.