The bill would allow the West Virginia Treasury to invest up to 10% in digital assets with a market Capital exceeding $750 billion; currently, only Bitcoin meets this criterion.
West Virginia Senator Chris Rose has introduced a bill to amend state law to allow the Treasury to invest in precious metals, digital assets, and stablecoins. The bill, introduced to the legislature on Wednesday, proposes that the State Treasury Board be permitted to invest up to 10% of its holdings in these asset classes, marking a significant step toward integrating crypto assets into the state's public finances.
The bill, titled the Inflation Protection Act, sets specific criteria for which digital assets are eligible for investment. Accordingly, only assets with a market Capital greater than $750 billion in the preceding calendar year qualify. As of January, Bitcoin was the only cryptocurrency meeting this requirement, indicating the bill is designed to prioritize assets with the greatest stability and market capitalization.
Asset custody and management mechanism
According to the bill, all digital assets purchased by state treasuries can be held through three methods. First, using a qualified custodian; second, through a tradable product on an exchange; and third, using a secure custody solution. For stablecoins, the bill requires that any purchased must receive regulatory approval from the U.S. federal government or from individual state governments.
West Virginia is joining a trend of U.S. states proposing legislation to allow investment in Bitcoin and other cryptocurrencies. While many lawmakers have introduced similar bills in 2025, only Texas, Arizona, and New Hampshire have passed legislation permitting the establishment of cryptocurrency reserves at the state level. As of Thursday, it was unclear whether Rose's bill would have enough support to pass, as lawmakers have sent the bill to the Banking and Insurance Commission for XEM .
The West Virginia bill was introduced amid a delay by U.S. Senate lawmakers in a hearing to move forward with legislation establishing a framework for the digital asset market in the U.S. The CLARITY Act has drawn considerable criticism from industry figures regarding regulations on decentralized finance, stablecoin rewards, and the Vai of U.S. financial regulators in overseeing digital assets.
This delay highlights the challenges in establishing a comprehensive legal framework for the cryptocurrency market at the federal level, while states are proactively seeking their own solutions for investment activities.
