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Illinois’ HB1844 bill proposes a state-run Bitcoin reserve with a mandatory five-year holding period before allowing conversions or sales.
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Illinois became the latest US state to advance a Bitcoin strategic reserve bill, seeking to deploy the world’s first cryptocurrency as a financial savings technology.
Introduced by Illinois State Representative John Cabello, House Bill 1844 (HB1844) proposes the creation of a strategic Bitcoin (BTC) reserve as a “special fund in the state treasury for the purpose of holding Bitcoin as a financial asset.”
Screenshot of HB1844 bill. Source: Ilga.gov
Notably, the bill proposes a minimum five-year Bitcoin holding strategy after the creation of the fund, according to the filing:
“Provides that the State Treasurer shall hold all Bitcoin deposited into the Fund for a duration of at least 5 years from the date that the Bitcoin enters the State’s custody.”
After the five-year holding period, the state treasury would be allowed to “transfer, sell, appropriate, or convert to another cryptocurrency any Bitcoin in the Fund.”
Status of HB1844 bill. Source: Ilga.gov
The bill was referred to the Rules Committee on Jan. 29, to establish the final regulatory details and await full approval by lawmakers.
Illinois’ Bitcoin bill comes a day after the Arizona Senate advanced its Bitcoin reserve legislation, which seeks to allow public funds and pensions to invest in Bitcoin.
Related: Czech National Bank governor to propose $7B Bitcoin reserve plan
Bitcoin Reserve will see state-by-state approach in “bold step” for TradFi integration
Illinois’ Bitcoin Act is a “step in the right direction” for Bitcoin adoption in the US, according to Mouloukou Sanoh, co-founder and CEO of MANSA, a decentralized payment network.
The decision “aligns with President Donald Trump’s broader vision of creating a Bitcoin reserve,” Sanoh told Cointelegraph, adding:
“The decision to accept Bitcoin as a reserve asset is a bold step toward integrating cryptocurrency into traditional finance, positioning the state as a leader in blockchain innovation.
Related: Nvidia slump and $100B crypto IPOs could fuel Bitcoin rally
While Illinois’ move may inspire other states to follow suit, nationwide approval will likely be slower, depending on regulatory clarity and market stability, explained Sanoh:
“For now, a state-by-state approach seems probable, allowing for experimentation and risk management before any broader consensus is reached.”
Texas Lieutenant Governor Dan Patrick announced the state’s 2025 legislative priorities on Jan. 29, which included a proposal to establish a Texas Bitcoin Reserve.
Two public officials in Texas have introduced legislation to create a Bitcoin reserve in the Lone Star State.
Bitcoin in U.S. Reserves: Could It Drive Prices to $500K? Source: YouTube
Magazine: BTC above $150K is ‘speculative fever,’ SAB 121 canceled, and more: Hodlers Digest, Jan. 19 – 25
This article first appeared at Cointelegraph.com News
