On Wednesday, Illinois Republican John Cabello introduced a new bill to create a strategic Bitcoin reserve through the state treasury, joining at least six other US states exploring the option.

Proponents of strategic Bitcoin reserves tout their ability to offer states greater financial sovereignty and autonomy away from a central bank.

Last month, Texas proposed a Bitcoin treasury fund to combat rising inflation in the world’s eighth-largest economy. “No taxpayer funds will be spent on buying Bitcoin in order to maximize the chances of the bill passing,” said the Texas Blockchain Council’s Lee Bratcher, whose organization worked on the effort. “The Bitcoin will come from donations from Texans, U.S.-based companies, and other sources of existing state resources.”

However, a strategic Bitcoin reserve still faces a range of limitations, including Bitcoin's price volatility, which undermines its role as a stable store of value, as well as challenges related to liquidity and adoption.

States are not alone in exploring Bitcoin reserves. Ahead of the 2024 US presidential election, Donald Trump told audience members at the national Bitcoin conference (Bitcoin 2024) about his plan for a “strategic national Bitcoin stockpile.”

Although Trump has yet to formally unveil such a Bitcoin reserve, his administration is reportedly assessing the feasibility of the stockpile.

Last July, Wyoming Senator Cynthia Lummis also introduced the BITCOIN Act , aiming to create the country’s first national Bitcoin reserve.

This week, Lummis noted the importance of creating one as other nations eye the same goal: "If you’re not first, you’re last,” Lummis said. “America must take decisive action to establish a strategic Bitcoin reserve and secure its place in the 21st century."