West Virginia lawmakers launched laws this week that may authorize the state treasurer to take a position a portion of public funds in bitcoin, treasured metals, and controlled stablecoins, marking a big step towards integrating digital belongings into state-level finance.
West Virginia Senate Invoice 143, launched by Sen. Chris Rose through the 2026 common legislative session, would create a brand new part of state regulation titled the “Inflation Safety Act of 2026.” The measure permits the Board of Treasury Investments to allocate as much as 10% of funds it oversees into gold, silver, platinum, and sure digital belongings, topic to current funding guidelines.
Below the invoice, the West Virginia may invest in digital assets that maintained a mean market capitalization above $750 billion over the prior calendar 12 months. That threshold at the moment limits eligibility to solely bitcoin, with out naming the asset immediately in statute.
On the finish of the digital invoice, there’s textual content that claims “The aim of this invoice is to empower the Treasurer to put money into gold, silver, and bitcoin.”
The invoice additionally permits investments in stablecoins which have acquired regulatory approval at either the federal or state level.
The proposed 10% cap would apply on the time an funding is made. If asset costs rise and push the allocation above that threshold, the board wouldn’t be required to promote holdings, although it could be barred from making extra purchases till the allocation falls again under the restrict.
The laws contains detailed custody necessities for digital belongings. Holdings would must be secured both immediately by the West Virginia treasurer by way of an outlined safe custody system, by a certified third-party custodian, or by way of a registered exchange-traded product.
The invoice outlines requirements for key management, geographic redundancy, entry controls, audits, and catastrophe restoration.
Along with holding digital belongings, the invoice would enable the treasurer to pursue yield-generating actions. Digital belongings may very well be staked utilizing third-party suppliers if authorized possession stays with West Virginia. The treasurer may additionally mortgage digital belongings below guidelines designed to keep away from added monetary danger.
Valuable metals investments may very well be held by way of exchange-traded merchandise, by certified custodians, or immediately by West Virginia in bodily type. The invoice permits for cooperative custody preparations with different states, topic to guidelines established by the treasurer.
West Virginia retirement funds would face tighter limits. Below the proposal, retirement methods may make investments solely in exchange-traded merchandise registered with federal or state regulators, relatively than holding digital belongings immediately.
The invoice grants the treasurer authority to suggest implementing guidelines, which might require legislative approval.
The proposal displays a growing interest among U.S. states in utilizing bitcoin and laborious belongings as long-term shops of worth for public funds.
West Virginia and different states exploring bitcoin
A number of states have explored or enacted related measures permitting restricted publicity to digital belongings, although most have relied on exchange-traded merchandise relatively than direct custody.
Most lately, Rhode Island lawmakers reintroduced Senate Invoice S2021, which might quickly exempt small Bitcoin transactions from state earnings and capital positive aspects taxes, permitting as much as $5,000 per 30 days and $20,000 yearly to be tax-free.
Launched January 9 by Senator Peter A. Appollonio, the invoice was referred to the Senate Finance Committee and is framed as a pilot program to cut back tax friction for on a regular basis Bitcoin use.
This marks the second consecutive 12 months Rhode Island legislators have proposed a focused Bitcoin tax exemption.
West Virginia Senate Invoice 143 has been referred to the Senate Committee on Banking and Insurance coverage, with a subsequent referral to the Committee on Finance.
On the time of writing, Bitcoin is buying and selling at $95,494 with a 24-hour quantity of $52 billion, down 1% on the day and roughly 1% under its seven-day excessive of $96,933. The asset’s market cap stands at $1.91 trillion, supported by a circulating provide of 19.98 million BTC out of a most 21 million.
