US States Embrace Bitcoin: Illinois & Indiana Plan Strategic Reserves

• Rep. John M. Cabello has filed a Strategic Bitcoin Reserve Act (HB1844) with the Illinois House to formally recognize Bitcoin as a state financial asset. 
• Similarly, Indiana has introduced a bill to explore how blockchain technology could significantly improve data security, consumer experience, etc. while permitting funds to be invested in Bitcoin ETFs. 

In a previous article, we discussed the submission of legislation by about 15 States in the US to establish a strategic Bitcoin reserve. According to that report, the CEO of the Satoshi Action Fund, Dennis Porter, hinted that more states may make a move. Soon after, two states – Illinois and Indiana proposed a comprehensive bill to integrate Bitcoin into their financial strategies.

According to reports, both bills appear slightly different but bordered around the prioritization of Bitcoin and Blockchain technology in major financial decisions of the states.

Illinois Strategic Bitcoin Reserve Bill

Based on the documents at our disposal, a Strategic Bitcoin Reserve Act (HB1844) has been filed by Rep. John M. Cabello to recognize Bitcoin as a state financial asset. The storing, securing, and holding of the asset was proposed to be the responsibility of the Illinois State Treasurer.

Meanwhile, the Treasurer may accept gifts, donations, and grants in Bitcoin from residents and government entities. Residents who donate to the fund would also receive a certificate of acknowledgment with the possibility of being publicly recognized for their contributions, as indicated in the bull.

According to the bill, Bitcoin has the potential to enhance the physical resilience of the State with its ability to act as an inflationary hedge.

Bitcoin is a valuable digital asset with strategic potential for enhancing the State’s fiscal resilience. Bitcoin can serve as a hedge against inflation and economic volatility.

For adequate security, the asset has been proposed to be stored using secure “custodial technologies, best practices in digital asset management, and cold storage.” Fascinatingly, provisions were made to prevent misuse as it prohibits transactions involving foreign entities and individuals living outside the state. Also, the use of the fund for illegal activities was highlighted to be strictly prohibited.

The filing further stresses transparency and accountability, disclosing that a detailed biennial report on the total Bitcoin held, its equivalence in the US dollar, security incidents, transactions, and fund growth would be released, with the first publication expected by December 31, 2026.

Indiana’s Bitcoin Strategy

House Bill 1322 was authored by state Representative Jake Teshka and co-authored by Representatives Shane Lindauer and Cory Criswell. Unlike HB1844, this transcends the Bitcoin investment strategies to blockchain adoption.

In the bill, the Department of Administration is directed to comprehensively explore the potential impact of blockchain technology on the consumer experience, data security, and government efficiency.

An excerpt of the bill reads:

The Department of Administration (department) shall issue a request for information for purposes of exploring how the use of blockchain technology could be used by a state agency to (1) achieve greater cost efficiency and cost-effectiveness and (2) improve consumer convenience, experience, data security, and data privacy.

Additionally, the bill permits the use of various funds including the public employees’ retirement fund, state teachers’ retirement fund, etc, to be invested in spot Bitcoin Exchange-Traded Funds (ETFs).

According to the information reaching us, other states, including South Dakota and Kentucky, may soon file similar bills. Meanwhile, the Arizona Senate Finance Committee has already approved a bill to permit the investment in Bitcoin with public funds, as previously mentioned in our report.

At press time, Bitcoin was trading at $105k after surging by 2.4% in the last 24 hours. According to our recent analysis, the asset stands a chance of matching the market cap of gold and hitting $1 million in ten years.