The state of Illinois has taken a pioneering step in U.S. cryptocurrency policy by introducing the Community Bitcoin Reserve Act (SB3743/HB5621). This legislation, proposed by Senator Jones, aims to establish a state-level Bitcoin reserve focused on long-term holding, not speculation, and is designed to be budget-neutral, avoiding new state debt or taxpayer burdens.
The core purpose of the act is to establish Bitcoin (BTC) as a protected, long-term state reserve asset for Illinois, with a strong emphasis on transparency and security. The pilot program, named the Altgeld Bitcoin Reserve, will be launched in the Altgeld Gardens district of Chicago. This initiative is positioned as the nation's first state-backed community cryptocurrency savings program, intended to provide underserved populations with a sustainable framework for saving and accessing digital assets.
The proposed framework includes stringent security measures. All Bitcoin holdings will require multisignature cold-storage custody, ensuring no single entity can unilaterally control the reserve. Community-designated keyholders will represent local interests. The administrative functions will be coordinated by the ABR Wealth Fund DAO LLC, a Wyoming-registered entity responsible for transparency procedures and audit compliance, though it will not own the Bitcoin. Quarterly proof-of-reserve reports and annual independent audits will be submitted to the Comptroller’s office for public posting.
A mandatory five-year minimum holding period is a cornerstone of the legislation. Communities cannot access the Bitcoin for programs until the sixth year, after which annual releases are capped at 0.21 Bitcoin or 1% of total holdings, whichever is less. The released funds, administered by the ABR Foundation, must be used for specified community programs like financial literacy, youth mentorship, and community development. The bill explicitly prohibits trading, lending, or leveraging of the reserve holdings, and Bitcoin cannot be used as collateral for speculative returns. Any sale of Bitcoin beyond the annual release requires General Assembly authorization.
The bill is currently under observation in the Senate Assignments Committee and awaits further committee reviews and public hearings. This move by Illinois reflects a growing trend, with reports indicating more than 16 other U.S. states are discussing similar Bitcoin reserve proposals.
