Illinois Introduces Bill to Allow Public Funds to Invest in Bitcoin Treasury Companies

Illinois state Senator Steve McClure has introduced SB3672 — the Local Government Digital Asset Investment Act — a bill that would amend the state's Public Funds Investment Act to allow public agencies to allocate up to 5% of their public funds into Bitcoin-related financial products. The bill would allow public funds to be invested in to Bitcoin treasury companies

Under the bill's definition, a qualifying "digital asset stock" is equity in a publicly traded company that holds at least 25% of its total assets in Bitcoin or other digital currencies, as verified by its most recent audited financial statements. That threshold is a deliberate filter — it targets companies that have made Bitcoin accumulation a core part of their identity, not firms with token exposure. In practical terms, it opens the door for Illinois municipalities, school districts, park districts, and other public agencies to buy shares in companies like Strategy, Twenty One Capital, Metaplanet, and Semler Scientific through the same brokerage infrastructure they already use.

This is a meaningful distinction from simply allowing Bitcoin ETF exposure, which the bill also permits alongside Bitcoin bonds. The direct authorization to hold equity in Bitcoin treasury companies means public money in Illinois could flow into the stocks that BitcoinTreasuries.net tracks — regulated, exchange-listed, and now potentially on the buy list for government treasurers across the state.

The bill also introduces transparency requirements to match. Any public agency making use of these investment powers would need to include a dedicated section in its annual financial report to the Illinois Comptroller, covering the performance and allocation of its Bitcoin-related holdings. The Comptroller would also have 180 days from the bill's effective date to issue nonbinding guidance helping agencies evaluate and report those investments.

Illinois joins a growing wave of states exploring Bitcoin-related investment legislation at the institutional level. What sets SB3672 apart is how directly it engages with the Bitcoin treasury company model — treating firms that hold substantial Bitcoin on their balance sheets as a legitimate, auditable asset class suitable for public fund exposure. For the companies on the Bitcoin 100, state-level legislation like this represents exactly the kind of institutional on-ramp that broadens their potential shareholder base.