Key Points
- Illinois is proposing a bill for establishing a strategic Bitcoin reserve with a minimum five-year holding period.
- Illinois’ Bitcoin bill follows similar legislation in Arizona and Utah, indicating a growing trend among US states.
Illinois is the latest US state to express interest in creating a Bitcoin reserve. This comes after Utah revealed its own plans for a Bitcoin reserve. Illinois is now advancing a bill that seeks to establish a strategic Bitcoin reserve as a financial savings technology.
State Representative John Cabello has introduced House Bill 1844 (HB1844) in Illinois. The bill aims to form a “special fund” within the state treasury to hold Bitcoin as a financial asset.
The filing suggests that the Illinois Treasury will hold Bitcoin for at least five years following the creation of the fund. The official filing states, “Provides that 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.”
Details of the Proposed Bill
After the five-year holding period, the state Treasury would be allowed to “transfer, sell, appropriate, or convert to another cryptocurrency any Bitcoin in the Fund.” The bill was sent to the Rules Committee on January 29 for final regulatory details and is now awaiting full approval by lawmakers.
Illinois’ Bitcoin bill comes shortly after Arizona’s Senate advanced its own Bitcoin reserve legislation. The Arizona bill seeks to allow public funds and pensions to invest in Bitcoin.
The Trend of Bitcoin Reserves in US States
Analysts are hopeful for a significant shift in US crypto policy following Donald Trump’s victory. This change would support the broader adoption of Bitcoin and other digital assets. The so-called “Trump effect” is also being observed in the global crypto space.
The Czech National Bank governor Aleš Michl has suggested allocating 5% of the central bank’s substantial 140 billion euro reserves to Bitcoin. Additionally, Wyoming Senator Cynthia Lummis has been advocating for Bitcoin reserves, proposing a plan to acquire 200,000 BTC over the next five years.
“We would have an asset that’s growing in value while our own dollar is decreasing in value, and thereby we could shore up the U.S. dollar as the world’s reserve currency,” Lummis said.
