Illinois, Indiana Push for State-Owned Bitcoin Reserves

Illinois and Indiana have introduced bills to establish a Strategic Bitcoin Reserve. They join a growing list of US states exploring Bitcoin as a financial asset. 

While Illinois aims to create a Bitcoin reserve fund, Indiana’s bill differs slightly. It explores how blockchain technology can enhance state agency operations. In addition, the bill explores investments in Bitcoin exchange-traded funds (ETFs).

Illinois’ Push for a Bitcoin Reserve

Illinois State Representative John M. Cabello has introduced House Bill 1844 (HB1844), also known as the Strategic Bitcoin Reserve Act. The bill highlights Bitcoin’s potential as a decentralized, finite digital asset that could serve as a hedge against inflation and economic volatility.

“A strategic bitcoin reserve aligns with Illinois’ commitment to fostering innovation in digital assets and providing Illinoisans with enhanced financial security,” the bill read.

The proposed bill seeks to establish the Strategic Bitcoin Reserve Fund, overseen by the State Treasurer. It offers provisions for accepting Bitcoin donations from residents and government entities.

Furthermore, the bill specifies a minimum holding period of five years. Therefore, any Bitcoin added to the fund would be held for the specified time before the state could sell, transfer, or convert it into another cryptocurrency. 

The bill also lays out guidelines for securing and managing the fund. It requires transparency through regular reports and gives the State Treasurer the power to set necessary rules.

Indiana’s Bitcoin Strategy

Meanwhile, Indiana is taking a slightly different approach. House Bill 1322, authored by state Representative Jake Teshka and co-authored by Representatives Shane Lindauer and Cory Criswell, focuses on both blockchain adoption and Bitcoin investment strategies. 

The bill directs the Department of Administration to explore how blockchain technology could improve government efficiency, data security, and consumer experience.

“The department of administration (department) shall issue a request for information for purposes of exploring how the use of blockchain technology could be used by a state agency to: (1) achieve greater cost efficiency and cost effectiveness; and (2) improve consumer convenience, experience, data security, and data privacy,” HB1322 states.

It also paves the way for state-managed investment in Bitcoin. The bill allows funds from the public employees’ retirement fund, state teachers’ retirement fund, and public officers’ funds to be invested in approved Bitcoin exchange-traded funds (ETFs). 

These include spot Bitcoin ETFs, which hold Bitcoin directly. Additionally, it includes Bitcoin futures ETFs. These track Bitcoin’s price movements through derivatives.

This move comes as Utah and Arizona advance legislation to invest public funds in digital assets. Furthermore, Texas Lieutenant Governor Dan Patrick has made the Bitcoin Reserve a top priority for 2025.

Similar proposals from South Dakota and Kentucky may follow as state representatives prepare to introduce bills creating a Strategic Bitcoin Reserve.