Illinois, Indiana Lead US States in Bitcoin Reserve Race

Generated by AI AgentCoin World
Thursday, Jan 30, 2025 1:25 am ET1min read
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Illinois and Indiana Move to Establish Strategic Bitcoin Reserves

Illinois and Indiana have introduced bills to establish a Strategic Bitcoin Reserve, joining a growing list of US states exploring Bitcoin as a financial asset. Illinois aims to create a Bitcoin reserve fund, while Indiana's bill explores how blockchain technology can enhance state agency operations and investments in Bitcoin exchange-traded funds (ETFs).

Illinois' Push for a Bitcoin Reserve

Illinois State Representative John M. Cabello has introduced House Bill 1844 (HB1844), also known as the Strategic Bitcoin Reserve Act. The bill highlights Bitcoin's potential as a decentralized, finite digital asset that could serve as a hedge against inflation and economic volatility. It seeks to establish the Strategic Bitcoin Reserve Fund, overseen by the State Treasurer, with provisions for accepting Bitcoin donations from residents and government entities. The bill specifies a minimum holding period of five years for any Bitcoin added to the fund, with guidelines for securing and managing the fund, and requirements for transparency through regular reports.

Indiana's Bitcoin Strategy

Indiana is taking a slightly different approach with House Bill 1322, authored by state Representative Jake Teshka and co-authored by Representatives Shane Lindauer and Cory Criswell. This bill focuses on both blockchain adoption and Bitcoin investment strategies. It directs the Department of Administration to explore how blockchain technology could improve government efficiency, data security, and consumer experience. Additionally, it paves the way for state-managed investment in Bitcoin by allowing funds from public employees' retirement fund, state teachers' retirement fund, and public officers' funds to be invested in approved Bitcoin ETFs, including spot Bitcoin ETFs and Bitcoin futures ETFs.

Similar initiatives are being considered in other US states, with Texas Lieutenant Governor Dan Patrick making the Bitcoin Reserve a top priority for 2025. Proposals from South Dakota and Kentucky may follow as state representatives prepare to introduce bills creating a Strategic Bitcoin Reserve.

These developments reflect a growing interest in Bitcoin and blockchain technology among US states, as they seek to enhance financial resilience and government efficiency through strategic investments in digital assets.