Illinois has become the latest U.S. state to advance a strategic reserve bill aimed at utilizing Bitcoin as a financial savings technology. Introduced by State Representative John Cabello, HB1844 proposes the creation of a special fund within the state treasury to hold Bitcoin as a financial asset.

Notably, the bill outlines a minimum five-year Bitcoin holding strategy following the establishment of the fund.

“The bill states that the State Treasurer shall hold all Bitcoin deposited into the Fund for at least five years from the date it enters the state’s custody.”

After the five-year period, the state treasury will be authorized to transfer, sell, allocate, or convert the Bitcoin in the fund into another cryptocurrency.

The bill was referred to the Rules Committee on January 29 to finalize the regulatory details and await legislative approval.

Illinois’ Bitcoin bill comes a day after the Arizona Senate advanced its Bitcoin reserve legislation, which aims to direct public funds and pension investments into Bitcoin.

Bitcoin Reserve Moves Forward with State-by-State Approach for Traditional Finance Integration

Illinois’ Bitcoin Act is seen as a “step in the right direction” for Bitcoin adoption in the U.S. According to Mouloukou Sanoh, co-founder and CEO of MANSA, this decision aligns with President Donald Trump’s broader vision of establishing a Bitcoin reserve.

“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 explained that while Illinois’ move might inspire other states, nationwide approval will likely progress more slowly, depending on regulatory clarity and market stability:

“For now, a state-by-state approach seems probable, allowing for experimentation and risk management before a broader consensus is reached.”

Additionally, Texas Lieutenant Governor Dan Patrick outlined the state’s 2025 legislative priorities on January 29, which included a proposal for a Texas Bitcoin Reserve. Two public officials in Texas have introduced legislation to create a Bitcoin reserve in the Lone Star State.

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Before Donald Trump’s presidential inauguration on January 20th, Wyoming became the latest state to propose a bill for the creation of a Strategic Bitcoin Reserve, following the footsteps of many other states across the country.

“Wyoming took its first bold step toward a strategic Bitcoin reserve,” wrote Wyoming Senator Cynthia Lummis in a post on the X platform on January 17th. Following the post, the bill titled “State Funds – Investment in Bitcoin” was introduced. If passed, the bill will allow some of Wyoming’s state funds to be invested in Bitcoin.

Lummis Praised Wyoming Representative for Bitcoin Move

A strong advocate for Bitcoin, Lummis, who introduced the Bitcoin Strategic Reserve bill to the U.S. Senate in July 2024, praised Wyoming Representative Jacob Wasserburger for introducing the bill that “would allow permanent funds to be diversified into Bitcoin.”

Lummis: “This forward-thinking approach will benefit our state while leading the nation in financial innovation,” she said.

The bill allows the state treasury’s general fund, the permanent Wyoming mineral trust fund, and the permanent land fund to invest in Bitcoin; however, it specifies that no more than 3% of each fund should be allocated to Bitcoin.

Furthermore, if Bitcoin investments in any fund exceed 3% of the total market value, the bill states that the state treasury “will not be required to sell or otherwise reduce investments to comply with this limit.”

U.S. States Pushing Bitcoin Adoption Forward

So far, Pennsylvania, Texas, Ohio, New Hampshire, Oklahoma, North Dakota, and Massachusetts have introduced the Strategic Bitcoin Reserve bill.

This development comes as the possibility of establishing a strategic Bitcoin reserve after Trump’s inauguration on January 20th has gained momentum, with betting markets Kalshi and Polymarket seeing rising odds. Additionally, it was reported that Lummis sent a letter to the U.S. Marshals Service on January 15th, addressing the possibility of selling the 69,370 Bitcoin seized by the government from Silk Road assets.

Lummis described the U.S. government’s efforts to sell Bitcoin reserves as a form of political animus.

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