Illinois is taking a significant step by proposing a strategic Bitcoin reserve through House Bill 1844 (HB1844). This bill aims to implement a five-year holding strategy for Bitcoin.
Introduced by State Representative John Cabello, this initiative seeks to create a special fund within the state treasury. The purpose? To hold Bitcoin as a financial asset.
Here’s the key point: once the fund is established, the State Treasurer must hold all Bitcoin deposited for at least five years. That means no selling or converting during that time.
After the five-year period, the state treasury can choose to transfer, sell, or even convert the Bitcoin into another cryptocurrency. This bill was referred to the Rules Committee on January 29, where it will undergo further review before getting full approval from lawmakers.
This move in Illinois comes right after Arizona advanced its own Bitcoin reserve legislation. Arizona's bill aims to allow public funds and pensions to invest in Bitcoin.
Mouloukou Sanoh, co-founder and CEO of MANSA, a decentralized payment network, sees Illinois’ Bitcoin Act as a positive step for Bitcoin adoption in the U.S. He believes this aligns with broader efforts to integrate Bitcoin into traditional finance.
Sanoh mentioned that this decision could position Illinois as a leader in blockchain innovation. However, while Illinois may inspire other states, nationwide adoption may take time. It depends on regulatory clarity and market stability.
For now, a state-by-state approach seems likely. This allows for experimentation and risk management before reaching a broader consensus.
In Texas, Lieutenant Governor Dan Patrick announced on January 29 that establishing a Texas Bitcoin Reserve is one of the state's legislative priorities for 2025. Two public officials in Texas are also working on legislation to create a Bitcoin reserve in their state.