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1 | AN ACT concerning State government. | |||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||||
3 | represented in the General Assembly: | |||||||||||||||||||||
4 | Section 1. Short title. This Act may be cited as the | |||||||||||||||||||||
5 | Strategic Bitcoin Reserve Act. | |||||||||||||||||||||
6 | Section 5. Findings and purpose. The General Assembly | |||||||||||||||||||||
7 | finds as declares: | |||||||||||||||||||||
8 | (1) bitcoin is a valuable digital asset with strategic | |||||||||||||||||||||
9 | potential for enhancing the State's fiscal resilience; | |||||||||||||||||||||
10 | (2) bitcoin's decentralized nature and finite supply | |||||||||||||||||||||
11 | provide unique qualities that can serve as a hedge against | |||||||||||||||||||||
12 | inflation and economic volatility; and | |||||||||||||||||||||
13 | (3) a strategic bitcoin reserve aligns with Illinois' | |||||||||||||||||||||
14 | commitment to fostering innovation in digital assets and | |||||||||||||||||||||
15 | providing Illinoisans with enhanced financial security. | |||||||||||||||||||||
16 | Section 10. Definitions. As used in this Act: | |||||||||||||||||||||
17 | "Bitcoin" means the decentralized digital asset created by | |||||||||||||||||||||
18 | a peer-to-peer network that operates with no central authority | |||||||||||||||||||||
19 | or banks. | |||||||||||||||||||||
20 | "Cold storage" means a method of storing private keys | |||||||||||||||||||||
21 | required to transact in bitcoin, with a nexus to a secure | |||||||||||||||||||||
22 | physical location, protected from unauthorized access and |
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1 | isolated from any network connections. | ||||||
2 | "Cryptocurrency" means a type of virtual currency that | ||||||
3 | utilizes cryptography to secure transactions that are | ||||||
4 | digitally recorded on a distributed ledger, such as a | ||||||
5 | blockchain. | ||||||
6 | "Custody" means the holding, safeguarding, and managing of | ||||||
7 | bitcoin assets by the State Treasurer. | ||||||
8 | "Donor" means an Illinois resident who gifts, grants, | ||||||
9 | donates, bequests, or devises bitcoin to be deposited into the | ||||||
10 | Strategic Bitcoin Reserve Fund. | ||||||
11 | "Fund" means the Strategic Bitcoin Reserve Fund. | ||||||
12 | "Governmental entity" means each officer, board, | ||||||
13 | commission, and agency created by the Constitution, whether in | ||||||
14 | the executive, legislative, or judicial branch of State | ||||||
15 | government; each officer, department, board, commission, | ||||||
16 | agency, institution, authority, university, and body politic | ||||||
17 | and corporate of the State; each administrative unit or | ||||||
18 | corporate outgrowth of State government that is created by or | ||||||
19 | pursuant to statute, including units of local government and | ||||||
20 | their officers, school districts, and boards of election | ||||||
21 | commissioners; and each administrative unit or corporate | ||||||
22 | outgrowth of the foregoing items and as may be created by | ||||||
23 | executive order of the Governor. | ||||||
24 | Section 15. Strategic Bitcoin Reserve Fund. | ||||||
25 | (a) The Strategic Bitcoin Reserve Fund is created as a |
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1 | special fund in the State treasury for the purpose of holding | ||||||
2 | bitcoin as a financial asset. | ||||||
3 | (b) The State Treasurer shall manage the Fund and shall | ||||||
4 | implement secure storage, management, and reporting systems | ||||||
5 | for the assets in the Fund. | ||||||
6 | (c) The State Treasurer may accept gifts, grants, and | ||||||
7 | donations of bitcoin from Illinois residents and governmental | ||||||
8 | entities for deposit into the Fund, subject to the limitations | ||||||
9 | described in subsection (b) of Section 20. | ||||||
10 | (d) The State Treasurer shall hold all bitcoin deposited | ||||||
11 | into the Fund for a duration of at least 5 years from the date | ||||||
12 | that the bitcoin enters the State's custody. After this | ||||||
13 | period, the State Treasurer may transfer, sell, appropriate, | ||||||
14 | or convert to another cryptocurrency any bitcoin in the Fund. | ||||||
15 | Section 20. Management and security of the Fund. | ||||||
16 | (a) The State Treasurer shall develop policies and | ||||||
17 | protocols to ensure the secure storage and protection of | ||||||
18 | bitcoin held in the Fund, including the use of secure | ||||||
19 | custodial technologies, cold storage, and best practices in | ||||||
20 | digital asset management. | ||||||
21 | (b) The State Treasurer shall prohibit transactions | ||||||
22 | involving foreign countries, entities, or individuals outside | ||||||
23 | of Illinois, or entities or individuals known to engage in | ||||||
24 | illegal activities. | ||||||
25 | (c) The State Treasurer may contract with a qualified, |
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1 | independent, United States-based third-party cryptocurrency | ||||||
2 | entity to assist in the creation, maintenance, operation, or | ||||||
3 | administration of the Fund's security. | ||||||
4 | (d) The State Treasurer shall conduct regular audits of | ||||||
5 | the Fund to ensure transparency and security. | ||||||
6 | Section 25. Reporting requirements. | ||||||
7 | (a) The State Treasurer shall prepare a biennial report | ||||||
8 | including: | ||||||
9 | (1) the total amount of bitcoin held in the Fund; | ||||||
10 | (2) the equivalent value of the Fund in U.S. dollars; | ||||||
11 | (3) the growth of the Fund since the previous report; | ||||||
12 | (4) any transactions or expenditures related to the | ||||||
13 | Fund since the previous report; | ||||||
14 | (5) any security threats experienced since the | ||||||
15 | previous report; and | ||||||
16 | (6) the amount of bitcoin that, after the mandatory | ||||||
17 | 5-year holding period, is eligible to be converted or | ||||||
18 | transferred. | ||||||
19 | (b) No later than December 31, 2026, and every 2 years | ||||||
20 | thereafter, the State Treasurer shall submit the report to the | ||||||
21 | General Assembly and publish the report on the State | ||||||
22 | Treasurer's website. | ||||||
23 | Section 30. Voluntary donations of bitcoin by Illinois | ||||||
24 | residents. |
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1 | (a) The State Treasurer may accept a gift, grant, | ||||||
2 | donation, bequest, or devise of bitcoin from Illinois | ||||||
3 | residents for deposit into the Strategic Bitcoin Reserve Fund. | ||||||
4 | (b) The State Treasurer shall develop a donation process | ||||||
5 | to facilitate bitcoin contributions from Illinoisans. | ||||||
6 | (c) All bitcoin donations shall be held in the Strategic | ||||||
7 | Bitcoin Reserve Fund and managed under the same protocols as | ||||||
8 | other assets in the State treasury. | ||||||
9 | (d) Upon request, the State Treasurer may issue a | ||||||
10 | certificate of acknowledgment to individuals or organizations | ||||||
11 | donating bitcoin for deposit into the Fund. | ||||||
12 | (e) The State Treasurer may also establish a recognition | ||||||
13 | program to publicly honor significant contributions to the | ||||||
14 | Fund made by Illinoisans. | ||||||
15 | (f) The State Treasurer shall have the discretion to | ||||||
16 | determine the eligibility of donors. If the State Treasurer | ||||||
17 | determines that a donor is ineligible, the State Treasurer | ||||||
18 | shall establish a process to return any bitcoin transferred to | ||||||
19 | the Fund to the ineligible donor. | ||||||
20 | Section 35. Cryptocurrency conversion. | ||||||
21 | (a) A State agency that accepts cryptocurrency shall first | ||||||
22 | convert the accepted cryptocurrency to an equivalent value of | ||||||
23 | bitcoin, if necessary, before transferring the bitcoin to the | ||||||
24 | State Treasurer to deposit into the Fund. | ||||||
25 | (b) The State Treasurer shall adopt rules to compensate |
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1 | State agencies in United States dollars for the bitcoin that | ||||||
2 | the State agency transfers to the State Treasurer for deposit | ||||||
3 | into the Fund. | ||||||
4 | Section 40. Rulemaking. The State Treasurer may adopt | ||||||
5 | rules necessary to administer this Act, including, but not | ||||||
6 | limited to, security protocols, reporting standards, and | ||||||
7 | donation procedures. | ||||||
8 | Section 90. The State Finance Act is amended by adding | ||||||
9 | Section 5.1030 as follows: | ||||||
10 | (30 ILCS 105/5.1030 new) | ||||||
11 | Sec. 5.1030. The Strategic Bitcoin Reserve Fund. | ||||||
12 | Section 99. Effective date. This Act takes effect upon | ||||||
13 | becoming law. |