Illinois has introduced a bill to establish a state-managed Bitcoin reserve, joining Texas, Indiana, and other states in exploring Bitcoin-related legislation as part of a broader trend toward state-level digital asset adoption.
Illinois Introduces BTC Reserve Legislation
Amidst a growing global trend of countries contemplating strategic Bitcoin reserves, the American states are not far behind. Illinois State Representative John M. Cabello has introduced House Bill 1844 (HB1844), also known as the Strategic Bitcoin Reserve Act. The bill proposes the creation of a state-managed Bitcoin reserve fund, positioning Bitcoin as a hedge against inflation and economic instability.
The bill states,
“A strategic bitcoin reserve aligns with Illinois’ commitment to fostering innovation in digital assets and providing Illinoisans with enhanced financial security.”
Terms of Legislation
Under the proposed legislation, the Illinois State Treasurer would oversee the Strategic Bitcoin Reserve Fund and would have the authority to accept Bitcoin donations from residents and government entities. Any Bitcoin added to the fund would be held for a minimum of five years before it could be sold, transferred, or converted. The bill also empowers the State Treasurer to establish regulations for managing the reserve. If enacted, Illinois would become the first U.S. state to implement a formal Bitcoin reserve strategy.
Other U.S. States Exploring BTC Reserves
Illinois is not alone in considering Bitcoin as part of its financial strategy. Indiana has introduced a similar bill but with a broader focus on blockchain integration in government operations. The Indiana proposal includes provisions for investing public funds in Bitcoin ETFs and exploring how blockchain technology can enhance state agency functions, data security, and overall efficiency.
Elsewhere, Utah and Arizona are advancing legislation aimed at investing public funds in digital assets, while Texas is also taking steps toward establishing a Bitcoin reserve.
Texas To Prioritize BTC Reserve for 2025
Texas, already a major hub for Bitcoin mining due to its favorable regulatory environment and abundant energy resources, is positioning itself as a leader in Bitcoin adoption at the state level, with multiple legislative initiatives aimed at incorporating Bitcoin into its financial system. In December 2024, Republican state Representative Giovanni Capriglione introduced a bill in the Texas House of Representatives proposing the creation of a state-managed Bitcoin reserve.
More recently, in January 2025, Texas state Senator Charles Schwertner introduced a similar proposal in the state legislature. Additionally, Texas Lieutenant Governor Dan Patrick included the establishment of a Bitcoin reserve among his legislative priorities for the 2025 session, signaling strong political support for the initiative.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
