Illinois Proposes State-Run Bitcoin Reserve with Five-Year Holding Strategy

Illinois has introduced groundbreaking legislation that could position it as a leader in cryptocurrency adoption among U.S. states. House Bill 1844 (HB1844), introduced by State Representative John Cabello, proposes the creation of a state-run Bitcoin reserve, aiming to integrate the world’s leading cryptocurrency into the state’s financial strategy.

The bill calls for the establishment of a special fund in the state treasury dedicated to holding Bitcoin (BTC) as a financial asset. A key feature of the proposal is a mandatory five-year holding period for any Bitcoin acquired by the state. According to the bill’s language, the state treasurer would be required to hold all Bitcoin deposited into the fund for a minimum of five years, after which the state would have the option to transfer, sell, or convert the Bitcoin to another cryptocurrency.

“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,” the bill states.

The proposal is seen as a strategic move to leverage Bitcoin as a long-term financial asset. After the five-year holding period, the state could make decisions on the Bitcoin holdings based on market conditions, allowing for greater flexibility in managing state assets.

The bill was referred to the Rules Committee on January 29 for further review and regulatory details, with hopes for full approval from lawmakers in the near future.

Illinois’ push for a Bitcoin reserve follows similar efforts in other U.S. states, including Arizona, which advanced its own Bitcoin reserve legislation just a day earlier. Arizona’s bill aims to allow public funds and pensions to invest in Bitcoin, reflecting a growing trend among U.S. states to explore cryptocurrency as part of their financial strategies.

A Bold Step Toward Bitcoin Adoption in U.S. Finance

The Illinois Bitcoin bill is being hailed as a significant step for cryptocurrency adoption in the U.S. According to Mouloukou Sanoh, co-founder and CEO of MANSA, a decentralized payment network, Illinois’ proposal aligns with broader efforts to integrate Bitcoin into traditional finance. Sanoh described the move as a “bold step” toward creating a Bitcoin reserve, which he sees as part of a larger push to position the state as a leader in blockchain innovation.

“This decision to accept Bitcoin as a reserve asset is a bold step toward integrating cryptocurrency into traditional finance,” Sanoh told Cointelegraph. “It positions the state as a leader in blockchain innovation, aligning with a broader vision of creating a Bitcoin reserve.”

While Illinois takes this forward-thinking approach, Sanoh notes that nationwide approval of Bitcoin reserves will likely be gradual, driven by regulatory clarity and market stability. For now, a state-by-state approach seems to be the most feasible path, allowing for experimentation and risk management on a local level.

The proposal in Illinois may inspire other states to adopt similar measures, as evidenced by Texas, where Lieutenant Governor Dan Patrick recently announced the state’s 2025 legislative priorities, including the creation of a Texas Bitcoin Reserve. Additionally, two public officials in Texas have already introduced legislation to establish a Bitcoin reserve in the Lone Star State.

The Future of Bitcoin Reserves in U.S. States

As the momentum for state-run Bitcoin reserves grows, Illinois’ bill represents a bold move toward incorporating cryptocurrency into state financial frameworks. If approved, it could pave the way for other states to follow suit, positioning Bitcoin as a mainstream financial asset in the U.S.

While the road to nationwide Bitcoin reserve adoption may be slow, the growing interest from individual states signals a shift in how cryptocurrency is viewed within traditional finance. As more states explore Bitcoin reserves, the landscape for U.S. crypto policy and regulation will continue to evolve.