Illinois advances Bitcoin reserve bill for state treasury

Illinois took a significant step toward the adoption of cryptocurrency by moving forward with a bill that would establish a Bitcoin strategic reserve for the state. House Bill 1844 (HB1844), introduced by Illinois State Representative John Cabello, aims to utilize Bitcoin (BTC) as a financial savings technology by creating a special fund in the state treasury designated for holding Bitcoin as a financial asset.

The bill outlines a minimum five-year holding strategy for Bitcoin after the fund’s establishment, mandating that the State Treasurer maintain custody of all deposited Bitcoin for at least this duration. Following the five-year period, the state treasury would have the authority to manage the Bitcoin in the Fund, including the ability to transfer, sell, appropriate, or convert it to another cryptocurrency.

HB1844 was referred to the Rules Committee on January 29 to finalize the regulatory details and await the full approval of lawmakers. This development in Illinois follows closely on the heels of the Arizona Senate’s advancement of its own Bitcoin reserve legislation, which aims to permit public funds and pensions to invest in Bitcoin.

Mouloukou Sanoh, co-founder and CEO of MANSA, a decentralized payment network, commented to Cointelegraph on the significance of Illinois’ Bitcoin Act, noting that it represents a step in the right direction for Bitcoin adoption in the U.S. He highlighted that the decision to recognize Bitcoin as a reserve asset is a bold move toward integrating cryptocurrency into traditional finance and positions Illinois as a leader in blockchain innovation.

Sanoh also mentioned that while Illinois’ initiative could inspire other states to consider similar measures, nationwide adoption is expected to proceed at a slower pace, with a state-by-state approach allowing for experimentation and risk management before reaching a broader consensus.

In a related development, Texas Lieutenant Governor Dan Patrick announced on January 29 the state’s legislative priorities for 2025, which included a proposal for a Texas Bitcoin Reserve. Additionally, two public officials in Texas have introduced legislation aimed at creating a Bitcoin reserve in the state, signaling a growing interest in cryptocurrency reserves at the state level.

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