Illinois has taken a significant step towards integrating crypto into its financial framework with the introduction of House Bill 1844 (HB1844) . The bill, proposed by State Representative John Cabello, seeks to establish a state-run Bitcoin reserve that would function as a special fund within the state treasury.

One of the key provisions of HB1844 mandates a five-year holding period for any Bitcoin deposited into the fund. According to the bill’s text, the State Treasurer must retain custody of the Bitcoin for a minimum of five years.

Only after this period would the state treasury be permitted to transfer, sell, or convert the Bitcoin into another crypto.

The bill was referred to the Rules Committee on Jan. 29, where it will undergo further regulatory review before being presented for full legislative approval. This initiative comes on the heels of similar legislative efforts in other states, including Arizona where the Senate has advanced a bill allowing public funds and pensions to invest in Bitcoin.

Supporters of the bill argue that Illinois’ proposed Bitcoin reserve aligns with broader trends in financial innovation and could position the state as a leader in blockchain technology. However, the progress of such legislation may vary across the country, depending largely on regulatory clarity and market conditions.

In addition to Illinois, Texas is also considering similar measures. The Texas Lieutenant Governor announced on Jan. 29 that creating a Bitcoin reserve is among the state's legislative priorities for 2025.

Two public officials in Texas have already introduced proposals to establish a Bitcoin reserve in the state.