Key Takeaways
- Illinois' HB1844 bill proposes a state-run Bitcoin reserve.
- The bill mandates a five-year hodling period before any sales.
- Arizona and Texas are also considering Bitcoin reserves.
Illinois State Representative John Cabello introduced House Bill 1844 (HB1844) on Jan. 29, proposing the creation of a Strategic Bitcoin Reserve Fund within the state treasury.
According to the bill, this fund would be used…
… for the purpose of holding Bitcoin as a financial asset.
Strategic rationale
The bill highlights Bitcoin’s role as a hedge against inflation and economic instability.
The legislation states:
Bitcoin is a valuable digital asset with strategic potential for enhancing the State’s fiscal resilience.
Five-year holding requirement
A key provision of HB1844 mandates that all Bitcoin deposited into the fund must be held for at least five years.
The bill states:
The State Treasurer shall hold all Bitcoin deposited into the Fund for a duration of at least 5 years from the date that the Bitcoin enters the State’s custody.
After this period, the treasury would have the authority to…
… transfer, sell, appropriate, or convert to another cryptocurrency any Bitcoin in the Fund.
Security measures
The bill also lays out strict security measures, requiring the use of cold storage to safeguard the Bitcoin holdings.
It reads:
The State Treasurer shall develop policies and protocols to ensure the secure storage and protection of Bitcoin held in the Fund, including the use of secure custodial technologies, cold storage, and best practices in digital asset management.
Part of a growing trend
Illinois’ proposal comes amid a broader push by U.S. states to incorporate Bitcoin into their financial strategies.
Arizona’s Senate recently advanced a bill allowing public funds and pensions to invest in Bitcoin, while Texas officials have also proposed a state Bitcoin reserve as part of their 2025 legislative priorities.
Next steps
HB1844 has been referred to the Rules Committee for further review before moving forward in the legislative process.
