104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1844

 

Introduced 1/29/2025, by Rep. John M. Cabello

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.1030 new

    Creates the Strategic Bitcoin Reserve Act. Creates the Strategic Bitcoin Reserve Fund as a special fund in the State treasury for the purpose of holding bitcoin as a financial asset. Provides that the State Treasurer may accept gifts, grants, and donations of bitcoin from Illinois residents and governmental entities for deposit into the Fund. Provides that the State Treasurer shall hold all bitcoin deposited into the Fund for a duration of at least 5 years from the date that the bitcoin enters the State's custody. Allows the State Treasurer, after this period, to transfer, sell, appropriate, or convert to another cryptocurrency any bitcoin in the Fund. Adds provisions concerning the management and security of the Fund; reporting requirements; and voluntary donations of bitcoin by Illinois residents. Provides that the State Treasurer may adopt rules necessary to administer the Act. Effective immediately.


LRB104 08102 SPS 18148 b

 

 

A BILL FOR

 

HB1844LRB104 08102 SPS 18148 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Strategic Bitcoin Reserve Act.
 
6    Section 5. Findings and purpose. The General Assembly
7finds 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
18a peer-to-peer network that operates with no central authority
19or banks.
20    "Cold storage" means a method of storing private keys
21required to transact in bitcoin, with a nexus to a secure
22physical location, protected from unauthorized access and

 

 

HB1844- 2 -LRB104 08102 SPS 18148 b

1isolated from any network connections.
2    "Cryptocurrency" means a type of virtual currency that
3utilizes cryptography to secure transactions that are
4digitally recorded on a distributed ledger, such as a
5blockchain.
6    "Custody" means the holding, safeguarding, and managing of
7bitcoin assets by the State Treasurer.
8    "Donor" means an Illinois resident who gifts, grants,
9donates, bequests, or devises bitcoin to be deposited into the
10Strategic Bitcoin Reserve Fund.
11    "Fund" means the Strategic Bitcoin Reserve Fund.
12    "Governmental entity" means each officer, board,
13commission, and agency created by the Constitution, whether in
14the executive, legislative, or judicial branch of State
15government; each officer, department, board, commission,
16agency, institution, authority, university, and body politic
17and corporate of the State; each administrative unit or
18corporate outgrowth of State government that is created by or
19pursuant to statute, including units of local government and
20their officers, school districts, and boards of election
21commissioners; and each administrative unit or corporate
22outgrowth of the foregoing items and as may be created by
23executive order of the Governor.
 
24    Section 15. Strategic Bitcoin Reserve Fund.
25    (a) The Strategic Bitcoin Reserve Fund is created as a

 

 

HB1844- 3 -LRB104 08102 SPS 18148 b

1special fund in the State treasury for the purpose of holding
2bitcoin as a financial asset.
3    (b) The State Treasurer shall manage the Fund and shall
4implement secure storage, management, and reporting systems
5for the assets in the Fund.
6    (c) The State Treasurer may accept gifts, grants, and
7donations of bitcoin from Illinois residents and governmental
8entities for deposit into the Fund, subject to the limitations
9described in subsection (b) of Section 20.
10    (d) The State Treasurer shall hold all bitcoin deposited
11into the Fund for a duration of at least 5 years from the date
12that the bitcoin enters the State's custody. After this
13period, the State Treasurer may transfer, sell, appropriate,
14or 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
17protocols to ensure the secure storage and protection of
18bitcoin held in the Fund, including the use of secure
19custodial technologies, cold storage, and best practices in
20digital asset management.
21    (b) The State Treasurer shall prohibit transactions
22involving foreign countries, entities, or individuals outside
23of Illinois, or entities or individuals known to engage in
24illegal activities.
25    (c) The State Treasurer may contract with a qualified,

 

 

HB1844- 4 -LRB104 08102 SPS 18148 b

1independent, United States-based third-party cryptocurrency
2entity to assist in the creation, maintenance, operation, or
3administration of the Fund's security.
4    (d) The State Treasurer shall conduct regular audits of
5the Fund to ensure transparency and security.
 
6    Section 25. Reporting requirements.
7    (a) The State Treasurer shall prepare a biennial report
8including:
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
20thereafter, the State Treasurer shall submit the report to the
21General Assembly and publish the report on the State
22Treasurer's website.
 
23    Section 30. Voluntary donations of bitcoin by Illinois
24residents.

 

 

HB1844- 5 -LRB104 08102 SPS 18148 b

1    (a) The State Treasurer may accept a gift, grant,
2donation, bequest, or devise of bitcoin from Illinois
3residents for deposit into the Strategic Bitcoin Reserve Fund.
4    (b) The State Treasurer shall develop a donation process
5to facilitate bitcoin contributions from Illinoisans.
6    (c) All bitcoin donations shall be held in the Strategic
7Bitcoin Reserve Fund and managed under the same protocols as
8other assets in the State treasury.
9    (d) Upon request, the State Treasurer may issue a
10certificate of acknowledgment to individuals or organizations
11donating bitcoin for deposit into the Fund.
12    (e) The State Treasurer may also establish a recognition
13program to publicly honor significant contributions to the
14Fund made by Illinoisans.
15    (f) The State Treasurer shall have the discretion to
16determine the eligibility of donors. If the State Treasurer
17determines that a donor is ineligible, the State Treasurer
18shall establish a process to return any bitcoin transferred to
19the Fund to the ineligible donor.
 
20    Section 35. Cryptocurrency conversion.
21    (a) A State agency that accepts cryptocurrency shall first
22convert the accepted cryptocurrency to an equivalent value of
23bitcoin, if necessary, before transferring the bitcoin to the
24State Treasurer to deposit into the Fund.
25    (b) The State Treasurer shall adopt rules to compensate

 

 

HB1844- 6 -LRB104 08102 SPS 18148 b

1State agencies in United States dollars for the bitcoin that
2the State agency transfers to the State Treasurer for deposit
3into the Fund.
 
4    Section 40. Rulemaking. The State Treasurer may adopt
5rules necessary to administer this Act, including, but not
6limited to, security protocols, reporting standards, and
7donation procedures.
 
8    Section 90. The State Finance Act is amended by adding
9Section 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
13becoming law.