As US lawmakers continue working on crypto adoption and better regulations, Illinois and Indiana representatives have introduced new Bitcoin-related bills seeking to embrace the flagship crypto at the state level.
Illinois Introduces Strategic Bitcoin Reserve Act
On Wednesday, Illinois State Representative John Cabello introduced a bill to integrate Bitcoin (BTC) into the state’s financial framework. Illinois joins the list of US states seeking to adopt the flagship cryptocurrency.
House Bill 1844 (HB1844), or Strategic Bitcoin Reserve Act, aims to create a state-owned BTC reserve (SBR) managed by the Illinois State Treasurer. The bill creates “a special fund in the state treasury” to hold BTC as a financial asset.
If passed, the legislation would go into effect immediately, allowing the Illinois State Treasurer to receive Bitcoin gifts, grants, and donations from Illinois residents and governmental entities for the Fund.
Moreover, all BTC deposits into the funds must be held for at least 5 years, starting when the asset enters the State’s custody. Once the holding period is over, the bill allows the State Treasurer to “transfer, sell, appropriate, or convert to another cryptocurrency any Bitcoin in the fund.”
Illinois Representative introduces Strategic BTC Reserve Act. Source: ilga.gov
HB1844 outlined that the treasurer can develop policies and protocols to keep the fund safe, including “the use of secure custodial technologies, cold storage, and best practices in digital management.”
The legislation also mandates biennial reporting of the Fund’s status, detailing the total amount of Bitcoin and its equivalent in USD, the Fund’s growth, and any transaction updates since the previous report.
Cynthia Lummis, pro-crypto US Senator and head of the newly created Senate Banking Subcommittee of Digital Assets, recently stated that one of the first orders of business “will be to hold public hearings on the Strategic Bitcoin Reserve.”
Indiana Seeks BTC ETFs Allocation For Retirement Funds
Indiana US State Representative Jake Teshka also introduced a BTC-related bill on Wednesday. House Bill 1322 (HB 1322) seeks to evaluate blockchain technology’s potential and allow stated retirement funds to invest in Bitcoin-based investment products.
The legislation, co-authored by Representatives Shane Lindauer and Cory Criswell, requires the Department of Administration to explore blockchain technology’s potential use for cost efficiency, data security, and data privacy not later than March 1, 2026. The bill also provides that the department present a report to the legislative council with the information no later than October 1, 2026.
If passed, HB1322 would also allow public employees’ retirement funds or public officers of the state to invest their funds in certain BTC Exchange-Traded Funds (ETFs), which had a successful first year and surpassed experts’ expectations.
Indiana’s new legislation follows similar proposals from multiple US states. Recently, Kansas lawmakers introduced a bill to allow the Kansas Public Employees Retirement System (KPERS) to allocate up to 10% of public employee retirement funds to BTC ETFs if passed.
Florida is considering allocating a small percentage of its $185.7 billion pension fund to Bitcoin. Samuel Armes, head of the Florida Blockchain Business Association (FBBA), stated that FBBA was considering using 1% of Florida’s pension fund to invest in BTC, part of its strategy to launch an SBR.
Meanwhile, states like Oklahoma have introduced bills to authorize employees and residents to opt to receive salaries in Bitcoin and enable businesses to accept BTC payments.
Bitcoin trades at $104,900 in the one-week chart. Source: BTCUSDT on TradingView
