Illinois Advances Bitcoin Strategic Reserve Bill

Illinois Advances Bitcoin Strategic Reserve Bill

Illinois has taken a major step toward embracing cryptocurrency by advancing a bill to create a Bitcoin strategic reserve. House Bill 1844 (HB1844), introduced by State Representative John Cabello, proposes the establishment of a special fund within the state treasury dedicated to holding Bitcoin as a financial asset.

The bill outlines a minimum five-year holding strategy for Bitcoin after the fund's creation. During this period, the State Treasurer would be responsible for maintaining custody of all deposited Bitcoin. After the five-year period, the state treasury would gain the authority to manage the Bitcoin, including transferring, selling, or converting it to other cryptocurrencies.

HB1844 was referred to the Rules Committee on January 29 to finalize regulatory details and await full legislative approval. This development follows Arizona's recent advancement of similar Bitcoin reserve legislation, which aims to allow public funds and pensions to invest in Bitcoin.

Mouloukou Sanoh, CEO of MANSA, a decentralized payment network, praised Illinois' initiative, calling it a bold step toward integrating Bitcoin into traditional finance. He emphasized that recognizing Bitcoin as a reserve asset positions Illinois as a leader in blockchain innovation. Sanoh also noted that while Illinois' move could inspire other states, nationwide adoption is likely to progress slowly, with states experimenting and managing risks individually before broader consensus is reached.

In a related development, Texas Lieutenant Governor Dan Patrick announced legislative priorities for 2025, including a proposal for a Texas Bitcoin Reserve. Additionally, two Texas public officials have introduced legislation to create a Bitcoin reserve in their state, signaling growing interest in cryptocurrency reserves at the state level.

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