Illinois Bets Big on Five-Year HODL Bitcoin Reserve Strategy

Illinois has proposed a bold five-year HODL Bitcoin reserve strategy. The plan aims to integrate cryptocurrency into state finance and potentially inspire other U.S. states to adopt similar initiatives.

Illinois is taking a major step toward integrating Bitcoin into state finance with a bold new plan. House Bill 1844, introduced by State Representative John Cabello, proposes the creation of a strategic Bitcoin reserve. The catch? The state must HODL—hold on for dear life—for at least five years. HODL is a popular crypto term that emerged from a misspelled online forum post but now represents long-term holding through market ups and downs. According to Cointelegraph, the bill mandates that no Bitcoin in the reserve can be sold, converted, or transferred within the five-year period.

Other States also Eye Bitcoin Reserves

Illinois isn’t alone in exploring Bitcoin-backed reserves. Just a day before this proposal, Arizona advanced its own legislation to allow public funds and pensions to invest in Bitcoin. Meanwhile, Texas has listed establishing a Bitcoin reserve as one of its 2025 legislative priorities, showing growing interest across multiple states.

Experts See Bitcoin as TradFi Integration Opportunity

Mouloukou Sanoh, CEO of MANSA, described Illinois’ move as a “bold step toward integrating cryptocurrency into traditional finance.” He noted this approach aligns with broader U.S. strategies to embrace blockchain innovation. Analysts expect more states to follow suit but predict a cautious, state-by-state progression as regulations evolve.

At the time of writing, Bitcoin is sitting at $105,314.01.