A new bill introduced in the Illinois House seeks to establish a state-managed Bitcoin reserve, marking a significant step toward integrating digital assets into government financial strategies. Filed by Rep. John M. Cabello, the Strategic Bitcoin Reserve Act (HB1844) aims to create a Strategic Bitcoin Reserve Fund to hold BTC as a financial asset for the state.
Illinois Moves Towards Bitcoin Reserve
According to the bill, the fund will be managed by the Illinois State Treasurer, who will be responsible for securing, storing, and reporting on the Bitcoin holdings. The legislation states that the Treasurer may accept “gifts, grants, and donations of Bitcoin from Illinois residents and governmental entities for deposit into the Fund.” Once deposited, Bitcoin must be held for at least five years before it can be sold, transferred, or converted to another crypto.
The bill cites Bitcoin’s potential as a strategic financial asset, emphasizing its decentralized nature and scarcity. “Bitcoin is a valuable digital asset with strategic potential for enhancing the State’s fiscal resilience,” the bill states. It further argues that Bitcoin “can serve as a hedge against inflation and economic volatility.”
This marks Illinois’ first legislative effort to formally incorporate cryptocurrency into state financial policy. If passed, it could position Illinois among a small but growing number of governments worldwide exploring Bitcoin reserves.
Further, security remains a major focus of the bill, which mandates that Bitcoin holdings be stored using “secure custodial technologies, cold storage, and best practices in digital asset management.” The Treasurer must also “conduct regular audits of the Fund to ensure transparency and security.”
Other Clauses In The Bill
To prevent misuse, the bill prohibits transactions involving foreign entities, individuals outside Illinois, or anyone engaged in illegal activities. Additionally, the Treasurer may work with a third-party cryptocurrency entity to assist in fund security and management.
Illinois residents will have the option to contribute Bitcoin to the reserve voluntarily. In return, donors may receive “a certificate of acknowledgment” and could be publicly recognized for significant contributions.
A biennial report will be published detailing the total Bitcoin held, its U.S. dollar equivalent, fund growth, security incidents, and transactions. The first report is due by December 31, 2026. Currently, the bill has been referred to the Rules Committee for further discussion. If passed, the act will take effect immediately.
Also Read: Arizona Advances Bitcoin Strategic Reserve Bill, Moves Closer to Adoption
