Illinois SB3672: Local Government Digital Asset Investment Act

Illinois SB3672, the Local Government Digital Asset Investment Act, is a 2026 Illinois Senate bill that remains pending and has not been enacted as of June 11, 2026. The measure would create a new state act and amend the Public Funds Investment Act to address whether local public agencies may place a limited share of public funds into specified Bitcoin-linked financial products. The Illinois General Assembly status page lists the bill as referred to Senate Assignments on February 5, 2026, while the introduced text identifies Sen. Steve McClure as the sponsor and describes the bill as “AN ACT concerning finance.”

What Illinois SB3672 would do

The bill’s stated purpose is to authorize units of local government and other Illinois public agencies to invest a portion of public funds in Bitcoin-related exchange-traded funds, stocks of companies holding significant digital assets, and Bitcoin bonds. The text frames that authority around economic diversification, innovation, and competitiveness in the digital economy. Because SB3672 is still a bill, those provisions should be read as proposed legislative language rather than current Illinois law.

SB3672 defines three crypto-linked investment categories. A Bitcoin-related exchange-traded fund would be an ETF listed on a national securities exchange that invests directly or indirectly in Bitcoin, including spot Bitcoin ETFs and Bitcoin futures ETFs. A Bitcoin bond would be a debt security issued by a government, corporation, or other entity, listed on a national securities exchange or approved by the U.S. Securities and Exchange Commission, with principal or interest payments denominated in Bitcoin. A digital asset stock would be equity securities of a publicly traded company that holds a substantial portion of its assets in Bitcoin or other digital currencies.

Public funds investment cap

The bill would amend Section 2 of the Public Funds Investment Act by adding a crypto-linked investment authorization that applies notwithstanding other provisions of that Act. Under the introduced language, a public agency could invest up to 5% of its public funds in three categories: Bitcoin-related ETFs listed on a national securities exchange registered with the SEC; stocks of publicly traded companies listed on a national securities exchange that hold at least 25% of total assets in Bitcoin or other digital currencies, based on the most recent audited financial statements; and Bitcoin bonds listed on a national securities exchange or approved by the SEC.

This structure would not authorize direct holding of Bitcoin by local governments in the text reviewed. Instead, the proposed investment categories are exchange-listed or SEC-approved securities and securities-like instruments tied to Bitcoin or companies with substantial digital asset holdings. That distinction is important for editorial treatment because the bill is aimed at public funds investment authority rather than consumer crypto activity, exchange licensing, or digital asset custody.

Reporting and Illinois Comptroller oversight

SB3672 would require a public agency that invests in Bitcoin-related ETFs, digital asset stocks, or Bitcoin bonds to include a summary of those investments in its annual financial report submitted to the Illinois Comptroller under the Governmental Account Audit Act. The summary would include investment performance and allocation. The bill also states that within 180 days after the effective date of the Act, the Comptroller may issue nonbinding guidance to assist public agencies in evaluating and reporting those investments.

Status and timeline

The bill was filed, read for the first time, and referred to Senate Assignments on February 5, 2026. The Illinois status page later lists Sen. Neil Anderson as a Senate co-sponsor, and LegiScan records Sen. Jason Plummer as a chief co-sponsor added on March 26, 2026. The official Illinois status page still identifies the procedural last action as referral to Assignments, so the current profile should treat the bill as in committee unless a later official chamber action appears.

Crypto law significance

For CryptoSlate’s law profile taxonomy, SB3672 is best classified as a state-level bill focused on government crypto holdings and crypto-linked public fund investments. It does not create a broad Illinois digital asset regulatory regime, licensing framework, or consumer protection rule. Its narrower legal function is to propose limited public-agency investment authority, define eligible Bitcoin-linked instruments, and add annual reporting and possible Comptroller guidance if the bill is enacted and becomes effective.