Legislation Proposed to Allow West Virginia Treasury to Invest in Digital Assets and Precious Metals
State Senator Chris Rose has put forward a bill that would enable the West Virginia Treasury to diversify its holdings by including digital assets and precious metals. The proposed legislation, known as the Inflation Protection Act of 2025, was introduced on Feb. 14.
Key Points of the Bill:
- The bill suggests allowing investment in digital assets with a market capitalization exceeding $750 billion.
- Currently, the only digital asset meeting this criteria is Bitcoin (BTC).
- Investments in digital assets and precious metals would be capped at 10% of total treasury funds.
- Flexibility would be provided to hold assets either on-chain or through exchange-traded funds (ETFs).
Growing Trend Among States
West Virginia is part of a group of nearly two dozen US states exploring the idea of including digital asset reserves in their financial strategy to safeguard public funds from currency devaluation. The trend originated in Wyoming in 2024.
Recent Developments:
- Utah and Kentucky have also introduced bills to allocate state funds into digital assets.
- Michigan’s proposal does not specify limitations on asset types, potentially allowing for a broader range of crypto investments.
- Several other states, including Texas, Wyoming, and North Carolina, are also considering similar legislation.
Potential Economic Implications
Experts believe that the increasing adoption of Bitcoin reserves by states could impact market prices and broader financial trends. Analysts predict that states pursuing such legislation could generate significant demand for digital assets.
Implications:
- Increased state-level adoption may drive institutional involvement in the digital asset space.
- Legislative efforts to integrate digital assets into public funds are expected to gain traction.
- Critics warn about the price volatility of Bitcoin and the need for effective risk management strategies.
The West Virginia bill will undergo committee review before further legislative consideration. The state’s approach to digital asset adoption will be closely monitored by lawmakers and analysts.
