Illinois and Indiana are working on creating a Strategic Bitcoin Reserve. This initiative is part of a growing trend among states looking to explore Bitcoin as a financial asset. Illinois is focusing on establishing a Bitcoin reserve fund, while Indiana is looking into blockchain applications and Bitcoin investments through exchange-traded funds (ETFs).
In Illinois, State Representative John M. Cabello has introduced House Bill 1844, known as the Strategic Bitcoin Reserve Act. This bill acknowledges Bitcoin as a decentralized asset that can help protect against inflation and economic instability. The proposed reserve would be overseen by the State Treasurer. It would allow residents and government entities to donate Bitcoin.
Any Bitcoin added to the reserve would need to be held for a minimum of five years before it could be sold or transferred. The bill also emphasizes transparency, requiring regular updates on how the fund is managed.
Indiana’s approach is somewhat different. House Bill 1322, introduced by Representative Jake Teshka and supported by Representatives Shane Lindauer and Cory Criswell, aims to integrate blockchain technology and allow Bitcoin investments.
This bill instructs the Department of Administration to investigate how blockchain can enhance government efficiency and security. It also permits state-managed funds, such as public employees’ and teachers’ retirement funds, to invest in approved Bitcoin ETFs. These ETFs can either hold Bitcoin directly or track its price through futures contracts.
This movement is similar to efforts in states like Utah and Arizona, which are also working on legislation to invest public funds in digital assets.
