West Virginia lawmakers are advancing a bold proposal to allow the state to invest public funds in Bitcoin, precious metals, and regulated stablecoins, positioning it alongside a growing list of states exploring crypto as a treasury asset.
Quick Summary – TLDR
- Senate Bill 143 would let West Virginia invest up to 10% of state-managed funds in gold, silver, platinum, Bitcoin, and approved stablecoins.
- Bitcoin is the only digital asset that currently meets the $750 billion market cap requirement outlined in the bill.
- The proposal includes strict custody, staking, and lending rules to safeguard state-held digital assets.
- West Virginia would join Texas, Arizona, and New Hampshire in adopting Bitcoin for government reserves.
What Happened?
State Senator Chris Rose introduced the “Inflation Protection Act of 2026”, aiming to diversify West Virginia’s public investment strategy by adding Bitcoin and other hard assets. The bill has been referred to the Senate Committee on Banking and Insurance, with further review expected from the Finance Committee.
If passed, the legislation would place West Virginia among a growing number of U.S. states looking to treat Bitcoin like a strategic reserve asset.
JUST IN: 🇺🇸 West Virginia introduces a bill to allow allocating 10% of state funds to #Bitcoin
— Bitcoin Magazine (@BitcoinMagazine) January 16, 2026
BULLISH 🚀 pic.twitter.com/KE9i4fpY9i
West Virginia’s Plan to Hedge Against Inflation
The new bill authorizes the Board of Treasury Investments to allocate up to 10% of public funds into precious metals and digital assets, including:
- Gold, silver, and platinum
- Stablecoins with federal or state regulatory approval
- Digital assets with a market cap exceeding $750 billion in the prior year
Currently, Bitcoin is the only cryptocurrency that qualifies under the bill’s criteria, with a market cap of approximately $1.9 trillion. Ethereum, by comparison, sits at $390 billion, excluding it from eligibility.
While the bill doesn’t name Bitcoin directly, the final clause clearly states: “The purpose of this bill is to empower the Treasurer to invest in gold, silver, and bitcoin.”
Custody, Risk Management, and Yield Provisions
The legislation sets out stringent custody standards to ensure public funds remain secure. Assets must be held through:
- A secure custody system managed by the treasurer.
- A qualified third-party custodian.
- Or through a registered exchange-traded product (ETP).
Digital assets could also be staked or loaned using approved third-party providers, provided the legal ownership stays with West Virginia. The bill includes rules on:
- Key control and geographic redundancy
- Access and audit protocols
- Disaster recovery systems
Investments in precious metals may be held physically, via ETPs, or with qualified custodians. Cooperative custody arrangements with other states are also permitted under defined guidelines.
Retirement Funds Get Stricter Treatment
The bill draws a firm line when it comes to retirement assets. West Virginia’s pension systems would only be allowed to invest in registered exchange-traded products, not directly in digital assets or metals. This clause appears aimed at reducing risk exposure for retirement accounts.
Following a National Trend in State Crypto Adoption
West Virginia isn’t alone. Since 2024, more than two dozen U.S. states have introduced or passed legislation to explore or enact Bitcoin treasury strategies. For example:
- Texas became the first state to buy Bitcoin directly, investing $10 million split between BlackRock’s Bitcoin ETF and a self-custodied fund.
- Arizona allows its “rainy day funds” to hold Bitcoin.
- New Hampshire capped state Bitcoin reserves at 5%.
At the federal level, President Trump’s 2025 executive order called for a National Strategic Bitcoin Reserve, giving further legitimacy to state-level moves.
SQ Magazine Takeaway
In my experience covering state crypto policy, this bill is one of the most comprehensive we’ve seen. It doesn’t just say “buy Bitcoin.” It lays out exactly how to hold it, stake it, and manage it safely, which tells me lawmakers are thinking long-term. I find this shift from speculative to strategic extremely important. When states treat Bitcoin like digital gold, it signals maturity in the sector. It is not about hype. It’s about policy catching up to technology. And if this passes, I’d expect other states to follow fast.
