Illinois Proposes First US State Bitcoin Reserve

Illinois Bill Proposes First State-Level Bitcoin Reserve in US

Illinois State Representative John M. Cabello has introduced House Bill 1844 (HB1844), known as the Strategic Bitcoin Reserve Act, which aims to establish a state-level Bitcoin reserve in the US. The bill recognizes Bitcoin as a decentralized and limited asset that could serve as a hedge against inflation and economic uncertainty. The proposed reserve would be managed by the State Treasurer and allow Bitcoin donations from residents and government entities. Bitcoin added to the fund would be held for at least five years before being sold, transferred, or converted. The bill also includes rules for transparency, requiring regular reports on fund management.

Illinois' move aligns with initiatives in other states, such as Utah and Arizona, which are advancing legislation to invest public funds in digital assets. Texas Lieutenant Governor Dan Patrick has also made the Bitcoin Reserve a priority for 2025. Other states, including South Dakota and Kentucky, may follow with similar proposals. As more states consider Bitcoin as part of their financial strategy, the impact of these policies on state economies and public investments remains to be seen.

Illinois' Bitcoin Act is a "step in the right direction" for Bitcoin adoption in the US, according to Mouloukou Sanoh, co-founder and CEO of MANSA, a decentralized payment network. The decision "aligns with President Donald Trump’s broader vision of creating a Bitcoin reserve," Sanoh told Cointelegraph, adding: "The decision to accept Bitcoin as a reserve asset is a bold step toward integrating cryptocurrency into traditional finance, positioning the state as a leader in blockchain innovation."

While Illinois’ move may inspire other states to follow suit, nationwide approval will likely be slower, depending on regulatory clarity and market stability, explained Sanoh: "For now, a state-by-state approach seems probable, allowing for experimentation and risk management before any broader consensus is reached."

Illinois’ HB1844 bill proposes the establishment of a state-managed Bitcoin reserve with a mandatory five-year holding period, paving the way for broader cryptocurrency adoption. The bill mandates a minimum holding period of five years, ensuring stability and accountability before any transfers or conversions of Bitcoin can occur. This long-term perspective is crucial for managing the inherent volatility associated with cryptocurrencies, especially as public trust and regulatory clarity evolve.