West Virginia Lawmaker Pushes to Open State Treasury to Bitcoin and Stablecoins

A bill introduced this week in West Virginia would allow the state to put up to 10% of its treasury reserves into precious metals, certain digital assets and approved stablecoins, under a proposal framed as an inflation hedge.

The measure, sponsored by lawmaker Chris Rose and titled the Inflation Protection Act, sets a high bar for crypto eligibility. First, any digital asset would need to have held a market capitalisation above US$750 billion (AU$1.1 trillion) in the prior calendar year. 

Based on that threshold, the draft would effectively limit the state’s crypto exposure to Bitcoin. Like many other states that passed similar laws outlined.

Read more: Analysts Say Stress-Testing Gold vs. Bitcoin Reveals a Clear Winner

West Virginia to Use Treasury to Buy Bitcoin

The proposal outlines several custody routes for any digital assets the state holds, including use of a qualified third-party custodian, an exchange-traded product, or another secure custody solution. Stablecoins would be subject to tighter limits, requiring explicit regulatory approval from either the US federal government or individual states before the treasury could invest.

If it passes, West Virginia would join a small group of states exploring direct exposure to crypto and hard assets, as similar bills were introduced across the US in 2025, but only a limited number of states, including Texas, Arizona and New Hampshire, have passed laws creating some form of state-level crypto reserve or investment framework. 

The West Virginia bill has been referred to the legislature’s Committee on Banking and Insurance, with its prospects unclear as it faces debate over volatility, risk controls and fiduciary responsibility.

Related: Australia’s Crypto Industry Enters Its “Training Phase” as Regulation Turns Real