U.S. Regulation

Illinois May Become First U.S. State with an Official Bitcoin Reserve

On Jan. 29, the Bitcoin Strategic Bill was referred to the Rules Committee to establish regulations and fast-track its approval process. Illinois State Rep. John Cabello introduced the bill to set the groundwork for Bitcoin to become the new strategic asset of Illinois.

Under the new legislation, the Illinois State Treasurer would manage the fund and be permitted to accept gifts, grants, and donations of BTC from Illinois residents and governmental entities to make deposits. Upon entering the custody of the State, the bill proposes that BITC should be held for a minimum of five years.

After a five-year holding period, the State Treasurer may transfer, sell, or convert BTC into another cryptocy. In addition to allowing the hiring of the a treasurer to manage BTC, the bill includes language on managing and securing the fund, reporting on fund status. It will also allow Illinois residents to make voluntary donations in BTC to the State’s fund.

The legislation also allows the State Treasurer to adopt rules to administer this reserve. If passed, the Strategic Bitcoin Reserve Act would go into effect immediately, potentially making Illinois the first of any U.S. state to implement a formal strategy around a Bitcoin reserve.

Terron Gold

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