Proposed Pro-Bitcoin Legislation
Illinois Bitcoin Rights Act
A proposed law that protects individuals' rights to use, self-custody, and engage in activities with digital assets while limiting state and local government restrictions to foster Bitcoin adoption and innovation.
-Prohibits state agencies from restricting the acceptance of digital assets as payment for legal goods and services or the use of hardware wallets.
-Permits residents to operate nodes, develop software on protocols, transfer digital assets, and participate in staking without undue impairment.
-Exempts specific activities from money transmitter laws (node operation, digital asset exchanges, software development, and mining).
-Builds on Illinois's existing Consumer Protection Act by emphasizing user rights and economic growth.
Illinois Digital Asset Self-Custody Act
A proposed law to protect your right to hold and manage your own digital assets, like Bitcoin, without being forced to use a third-party service. Here’s what it means to you:
-Protects Your Control: You can store and manage your digital assets (like Bitcoin) yourself using a digital wallet or private key, without the state requiring you to use a bank or other custodian.
-No Extra Licenses: If you’re holding digital assets for personal use (like investing or saving), you don’t need a state license or registration.
-Safeguards Privacy: The state can’t take or restrict your digital assets without a legal process, like a court order.
-Fair Taxes: You won’t face special taxes or fees just for managing your own digital assets, though regular taxes (like income tax) still apply.
Illinois Municipal Digital Asset Investment Act
A proposed law that would let cities and towns in Illinois invest a small portion of their public money in Bitcoin-related investments. Cities and municipalities can choose to invest up to 5% of their funds in:
-Bitcoin ETFs: Funds traded on stock exchanges that track Bitcoin’s value
-Bitcoin Stocks: Shares of companies like Strategy, which hold a lot of Bitcoin
-Bitcoin Bonds: Special bonds where payments are made in Bitcoin, approved by the U.S. Securities and Exchange Commission (SEC)
It encourages economic growth and innovation by letting local governments tap into the digital economy while keeping things safe with rules like careful research and a low investment limit.
Illinois Bitcoin Tax Exemption Act
A proposed law to make it easier to use Bitcoin for everyday purchases by removing state taxes on those transactions. Here’s what it means to you:
-Removes state sales taxes and use taxes when you pay with Bitcoin for goods or services
-Applies to the full value of Bitcoin used, based on its market value at the time of purchase
-Works for anyone using Bitcoin directly as payment
-Encourages people and businesses to use Bitcoin, boosting innovation and attracting tech companies to Illinois
-Keeps things simple by not changing income taxes or federal rules
Illinois Bitcoin Innovation Act
A proposed law to accelerate Bitcoin development by creating a permanent regulatory sandbox for Bitcoin protocols, Layer 2 solutions, while fast-tracking licenses for developers and offering tax credits for open-source contributions. Here’s what it means to you:
-Establishes Permanent Sandbox: The Department of Financial and Professional Regulation runs an indefinite testing program exempting participants from state licensing, reporting, and capital rules.
-Fast-Tracks Developer Licenses: Successful sandbox exits lead to provisional licenses in 15 days and full charters in 6 months for Bitcoin-specific activities like node operation and wallet development.
-Provides R&D Tax Credits: Eligible open-source Bitcoin contributors claim 20% credits on qualified expenses up to $500,000 per year, covering developer salaries and tools, verifiable through public repositories.
-Promotes Economic Growth: Advisory council oversight ensures low-risk innovation, attracting jobs and investment in Illinois's Bitcoin ecosystem.
Illinois Bitcoin Mining Freedom Act
A proposed law to boost Bitcoin mining in Illinois by classifying it as essential infrastructure, offering tax exemptions and abatements, and incentivizing renewable energy use for facilities investing at least $1 million. Here’s what it means to you:
-Designates Mining as Essential: Qualified facilities get priority energy grid access and expedited permitting, requiring 90% annual uptime.
-Exempts Key Taxes: 10-year sales/use tax breaks on mining electricity (6.25%) and equipment; 50% property tax abatement with 10-job minimum.
-Incentivizes Renewables: 30% refundable credit on installation costs up to $2 million; $50 million annual grants from Clean Energy Fund for 100% renewable transitions.
-Builds Workforce: 50% reimbursement on training costs up to $100,000 yearly; $5,000 one-time bonus per new full-time job after 12 months.
-Drives Economic Impact: Certification process in 45 days attracts investment and jobs, with annual reporting for transparency; no federal tax changes.