Illinois has advanced a Bitcoin strategic reserve bill that will allow the state to hold the flagship cryptocurrency. On January 29, House Bill 1844 , introduced by State Representative John Cabello, was referred to the Rules Committee for further review before potential approval from lawmakers. The bill proposes the creation of a Strategic Bitcoin Reserve Fund, a special fund within the state treasury dedicated to holding Bitcoin as a financial asset. Managed by the State Treasurer, the fund would implement secure storage, management, and reporting systems for its Bitcoin holdings. The bill mandates that Bitcoin deposited into the fund must be held for at least five years from the date the assets enter custody before the state can transfer, sell, appropriate, or convert it to another cryptocurrency. Additionally, the bill allows the State Treasurer to accept Bitcoin donations, gifts, and grants from Illinois residents and government entities. It also outlines strict security measures, including the use of cold storage and compliance with digital asset management best practices. Further, the State Treasurer will be required to conduct periodic audits and publish a biennial report outlining the fund’s holdings, valuation, and security status, which will be published on the State Treasurer’s website. An excerpt from the bill states that the Bitcoin reserve “aligns with Illinois’ commitment to fostering innovation in digital assets and providing Illinoisans with enhanced financial security.” Unlike other states, Illinois’ bill does not outline any provisions for the state to invest in or purchase Bitcoin directly. Instead, the reserve will be built through voluntary contributions, including donations, gifts, and grants from Illinois residents and government entities. All assets must be converted into Bitcoin before being transferred to the fund. US states are racing to establish Bitcoin reserves Illinois has become the latest state to advance a Bitcoin reserve bill, as over a dozen other U.S. states are currently considering similar initiatives at various stages of legislative review. On January 29, the Utah House Economic Development Committee advanced its Blockchain and Digital Innovation Amendments bill, which, if passed, will allow the state treasurer to allocate up to 5% of certain public funds into eligible digital assets like Bitcoin. The bill has been advanced to the full House for consideration after it was approved by an 8-1 vote. Prior to that, the neighboring state of Arizona pushed the Strategic Bitcoin Reserve Act to the Senate Rules Committee for consideration. The bill proposes allowing public funds managed by the state treasurer to allocate up to 10% of their capital in Bitcoin and other digital assets. Other states like Ohio and Pennsylvania have also presented legislation that advocates for the creation of a state Bitcoin reserve. With President Donald Trump making pro-crypto moves at a federal level, state-led Bitcoin reserve initiatives appear to be gaining momentum. On January 23, 2025, Trump signed an executive order establishing a national cryptocurrency working group to explore the creation of a federal Bitcoin stockpile and develop a regulatory framework for digital assets. The post Illinois moves forward with Bitcoin reserve bill in crypto-friendly push appeared first on Invezz
