Question of the day
Tuesday, Jun 24, 2025 - Posted by Rich Miller
* AInvest…
Texas Governor Greg Abbott signed the “Bitcoin Reserve Bill” SB 21 into law on June 21, allowing the state to invest an unlimited amount of money from the state’s fund into Bitcoin (BTC). This legislation creates the Texas Strategic Bitcoin Reserve, enabling the Comptroller to purchase BTC as long as the asset’s market cap exceeds $500 billion, a threshold that only Bitcoin currently meets.
With the proposal signed into law, Texas became the third state in the US with an official Bitcoin reserve, joining New Hampshire and Arizona. The statute does not cap allocations, meaning lawmakers could appropriate the full balance of the Economic Stabilization Fund. The ESF closed fiscal 2024 with $21 billion in cash and investments, according to the Comptroller’s annual cash report and supplemental ESF fact sheet.
If legislators route the maximum, Texas alone could become the largest public-sector Bitcoin holder in the US. The state could funnel up to $2.1 billion in Bitcoin if it decides to allocate up to 10% of its budget in BTC, as Arizona had intended to with its failed bill. Together with New Hampshire, the total state allocations could reach nearly $2.2 billion.
* Illinois Treasurer Frerichs…
Illinois Treasurer Michael Frerichs announced today that he has made more than $5 billion in investment earnings from the state portfolio during his time in office.
With one month to go in the state’s Fiscal Year 2025, investment earnings are up 6.07% over the same 11 months in Fiscal Year 2024.
“Every dollar we earn in interest for the people of Illinois is a dollar that lawmakers don’t have to raise in taxes,” Frerichs said. “We are trying to maximize earnings for our state at a time when the Trump administration is looking to strip away health care for working families to give billionaires a tax cut.”
Treasurer Frerichs also has surpassed $3 billion in gross investment earnings for cities, villages, school districts, counties and other units of government that take part in the highly rated Illinois Funds local government investment pool the State Treasurer’s Office operates. The Illinois Funds has received the highest rating of AAA from Fitch, a national credit ratings agency.
“Working with local government to earn cities and school districts more through smart, safe investing helps at a time when costs are rising,” he said.
Treasurer Frerichs is the state’s Chief Investment and Banking Officer. He is responsible for investing state revenue in the state investment portfolio.
Under state law, the Treasurer’s Office is prohibited from directly investing the state’s portfolio in the stock market. Treasurer Frerichs convinced the General Assembly to allow his office to invest in secure local government bonds, such as those issued by Illinois school districts to purchase land or erect buildings, and prime money market funds that emphasize security and liquidity.
* The Question: Should Illinois allow the state treasurer to invest in cryptocurrency? Take the poll and then explain your answer in comments, please.
- Casper the Ghost Bus - Tuesday, Jun 24, 25 @ 11:39 am:
No.
Let it all ride on GameStop.
- CornAl DoGooder - Tuesday, Jun 24, 25 @ 11:53 am:
The lack of transparency with cryptocurrency is inherent in the name. Putting taxpayer dollars to support these blockchains designed in part to obscure illicit payments makes no sense. Further, cryptocurrency has a level of volatility that should be unacceptable to an investor entrusted with public dollars. This is an EASY no
- Lurker - Tuesday, Jun 24, 25 @ 11:55 am:
Yes but limited. For example, if up to 10% were allowed from the treasurer saw fit, I’d be ok with that. But honestly, I want more of our money in the stock market.
- Norseman - Tuesday, Jun 24, 25 @ 11:55 am:
Absolutely not[banned exclamation point]
It’s unregulated and will be too risky an investment.
- DS - Tuesday, Jun 24, 25 @ 12:01 pm:
I’d prefer a more traditional investment, like walking over to the Medinah Temple and putting it all on red.
Crypto is a scam.
- George Ryan Reynolds - Tuesday, Jun 24, 25 @ 12:03 pm:
No, and we should return to the gold standard, dang nabbit!
- Pundent - Tuesday, Jun 24, 25 @ 12:03 pm:
Investing state funds in an unregulated instrument? What could possibly go wrong?
- Socially DIstant Watcher - Tuesday, Jun 24, 25 @ 12:11 pm:
States should stick with safe investments, like rare coins
https://en.m.wikipedia.org/wiki/Coingate_scandal
- Redrepublican65 - Tuesday, Jun 24, 25 @ 12:19 pm:
Bitcoin’s value slides up and down like mercury.Also, while the dollar is backed by “the full faith and credit of the United States,” Bitcoin is backed by hope and air
- The Professor - Tuesday, Jun 24, 25 @ 12:21 pm:
Absolutely No! Cryptocurrency reminds me of the worthless bank notes that were issued in he early 19th century. Many of the notes were fraud and worthless, and served to disrupt the economy. After mid-century the economy was adjusted and our currency system was established. Only the US Government could issued currency. These hairbrained ideas are hard to comprehend.
- Leatherneck - Tuesday, Jun 24, 25 @ 12:24 pm:
No.
Crypto is basically like a legal form of digital Monopoly or other “play” money found in board games.
Stick with real investments (e.g., bonds, stocks, mutual funds, real estate).
- Chicagonk - Tuesday, Jun 24, 25 @ 12:27 pm:
I voted no. Texas has a large crypto mining industry, so I can see why they might do it.
- Passing through - Tuesday, Jun 24, 25 @ 12:29 pm:
Crypto, No. Bitcoin, Yes. They are distinctly different things and it doesn’t do anyone any good conflating the two. Unfortunately there are a lot of uneducated opinions on here every time Bitcoin is brought up and many seem reluctant to learn. Illinois will eventually have a Bitcoin treasury, when is anyones guess. However, everyone gets Bitcoin at the price they deserve.
- Anyone Remember - Tuesday, Jun 24, 25 @ 12:37 pm:
No. Even if it is real (not certain about that), is too volatile.
- Three Dimensional Checkers - Tuesday, Jun 24, 25 @ 12:38 pm:
No, the State should never purchase fake money.
- Keyrock - Tuesday, Jun 24, 25 @ 12:45 pm:
There is still no use for crypto - or Bitcoin - except money laundering. Better to invest in tulip bulbs.
- Huh? - Tuesday, Jun 24, 25 @ 12:57 pm:
There is a reason Nonfungible tokens are nicknames “not a f…ing thing”.
The US already has legit crypto markets. It is called the US banking system and stock markets. There are more dollars washing around electronically than there is actual cash.
- Eastside - Tuesday, Jun 24, 25 @ 1:01 pm:
I don’t invest in it personally but I am a little surprised by the adamant opposition. I mean, let’s face it, it wouldn’t be the worst financial move the State of Illinois has ever made.
- StarLineChicago - Tuesday, Jun 24, 25 @ 1:15 pm:
No. Crypto’s only value, by definition, is the artificial scarcity it creates. At some point the music’s going to stop and people are going to realize it’s not actually backed up by anything, and taxpayers should not be the ones holding the bag when it does.
- The Farm Grad - Tuesday, Jun 24, 25 @ 1:20 pm:
No.
Also, the Treasurer is actually outperforming his benchmark, the S&P LGIP (local government investment pool).
How many other money managers at the state or municipal level (in IL) can say that?
- ArchPundit - Tuesday, Jun 24, 25 @ 1:45 pm:
===o. Unfortunately there are a lot of uneducated opinions on here every time Bitcoin is brought up and many seem reluctant to learn.
Oh teach us wise one. What is the legal use case?
Bitcoin or any other crypto ‘currency’ is vaporware and investing in it just means the taxpayers of Texas are going to have to bail out the market when it collapses.
- ArchPundit - Tuesday, Jun 24, 25 @ 1:47 pm:
===I mean, let’s face it, it wouldn’t be the worst financial move the State of Illinois has ever made.
Actually, it would. Crypto ‘currency’ has no underlying value than the belief that it has value. Real currencies can pay taxes and that gives them real value assuming good stewardship by central banks. Crypto needs the dollar to have value. That’s why when the dollar looked to be crashing crypto crashed too.
- Benjamin - Tuesday, Jun 24, 25 @ 1:51 pm:
No. I confess I don’t have a better argument than “it feels like a scam and we’re all going to pay when the bubble bursts,” but…crypto feels like a scam, and we’re all going to pay when the bubble bursts.
- Steve - Tuesday, Jun 24, 25 @ 1:52 pm:
No: because it’s not backed by anything.
- Pundent - Tuesday, Jun 24, 25 @ 2:11 pm:
=Unfortunately there are a lot of uneducated opinions on here every time Bitcoin is brought up and many seem reluctant to learn.=
Lots of uneducated opinions amongst elected officials as well. And they’ve got a track record of making bad financial decisions.
- VK - Tuesday, Jun 24, 25 @ 2:12 pm:
I don’t generally suggest people invest in scams. I know carny nonsense when I see it.
I know it works. I dabbled in some small time trading. Cannot express enough how much of a scam it is. Cryptocurrencies are just Beanie Babies with more steps.
- Cyclone89 - Tuesday, Jun 24, 25 @ 2:14 pm:
I voted no becuase there is little no regulation.
- Proud - Tuesday, Jun 24, 25 @ 2:15 pm:
No. as others have said, they are backed by nothing
- Andrew - Tuesday, Jun 24, 25 @ 2:46 pm:
I voted yes. Being allowed to do so is fine. The Treasurer can be held accountable by the voters for unwise investments. There should be some constraints—no investments should be made in a coin tied to a politician or PAC or government contractor for example. That said, I think Frerichs is doing the right thing investing in tangible public projects, and I’d personally prefer he didn’t invest IL funds in crypto even if he was allowed to do so.
- walker - Tuesday, Jun 24, 25 @ 3:11 pm:
No
Bitcoin (alone right now) might have a real future as a stable medium of exchange and holder of value, but that remains to be seen.
The states investing their Treasury in it right now are signaling their loyalty to Trump and to the industry investors who are among his biggest donors. It is too speculative and variable for our Treasury.
Short-term we will need more and better regulation.
Long-term:, the biggest risks to its continued development and growth are a general lack of public trust due to reported scams and failures, and (ironically) the association with the Trump family, which also will destroy its credibility over time. .
- Annon'in - Tuesday, Jun 24, 25 @ 3:24 pm:
1. If Texas thinks it a good idea then it probably sucks
2. If Frerichs thinks there is merit then he might want to develop a proposal
- Pundent - Tuesday, Jun 24, 25 @ 4:31 pm:
=The states investing their Treasury in it right now are signaling their loyalty to Trump and to the industry investors who are among his biggest donors.=
Agreed. And it’s a frightening thought for stewards of the taxpayer’s money.
- james of Little Italy - Tuesday, Jun 24, 25 @ 4:52 pm:
Crypto is a scam.