YEREVAN (CoinChapter.com) — Illinois is taking steps to create a state-run Bitcoin (BTC) reserve with strict holding conditions. House Bill 1844 (HB1844), introduced by Illinois State Representative John Cabello, aims to position Bitcoin as a financial asset within the state treasury.
The bill outlines the formation of a strategic Bitcoin fund that will store BTC under state control. This reserve would function as a dedicated special fund to manage Bitcoin holdings, marking a significant policy shift.
A key aspect of the bill is the mandatory five-year holding period for Bitcoin before any transactions can occur. The state treasurer must retain all BTC deposits for at least five years before making any transfers, sales, or conversions.
Five-Year Bitcoin Holding Strategy Defined
HB1844 explicitly states that any Bitcoin acquired by the state will remain untouched for at least five years. According to the bill’s text:
“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.”
Once this period ends, the state will have the authority to sell, transfer, or convert BTC into another cryptocurrency. This approach introduces a long-term strategy rather than short-term market speculation.
The bill was referred to the Rules Committee on Jan. 29, awaiting further regulatory discussions and approval from lawmakers. The next steps will focus on finalizing the framework and addressing potential implementation challenges.
Illinois Follows Arizona in Bitcoin Reserve Plans
Illinois’ move follows a growing trend among U.S. states exploring Bitcoin reserves. Just a day before this proposal, the Arizona Senate advanced its own Bitcoin legislation, which seeks to allow public funds and pension investments in BTC.
This trend indicates a growing state-level adoption of Bitcoin as part of financial strategies. While federal policies remain unclear, individual states are taking their own approaches to integrate BTC into their economic plans.
State-by-State Approach Gains Traction
Mouloukou Sanoh, co-founder and CEO of MANSA, a decentralized payment network, believes Illinois’ decision could influence other states. He stated:
“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.”
Sanoh also noted that the move aligns with Donald Trump’s broader vision of creating a national Bitcoin reserve. However, he pointed out that widespread adoption will take time, adding:
“For now, a state-by-state approach seems probable, allowing for experimentation and risk management before any broader consensus is reached.”
Texas Joins the Bitcoin Reserve Debate
Texas is also stepping into the Bitcoin reserve discussion. On Jan. 29, Lieutenant Governor Dan Patrick announced legislative priorities for 2025, which included a proposal to establish a Texas Bitcoin Reserve.
Additionally, two public officials in Texas have introduced legislation to create a state-controlled BTC fund. The details of these proposals remain under review, but they indicate a broader shift toward state-driven cryptocurrency strategies.
