West Virginia State Senator Chris Rose has introduced a new piece of legislation aimed at expanding the state's investment portfolio to include digital assets and precious metals. This legislative proposal seeks to amend the existing state code, permitting the state treasury to allocate up to 10% of its investments in assets such as Bitcoin and stablecoins.
The bill, officially titled the Inflation Protection Act, was presented to the West Virginia legislature and outlines the conditions under which the state's Board of Treasury could diversify its investments. Specifically, it would allow for investments in precious metals and digital assets with a market capitalization exceeding $750 billion from the prior year. As of January, Bitcoin is the sole cryptocurrency meeting this threshold.
According to the bill, digital assets procured by the state treasury could be managed via a qualified custodian, an exchange-traded product, or a secure custody solution, ensuring the state's holdings are safely maintained. Furthermore, any stablecoins acquired must have regulatory approval from either the US federal government or individual state authorities.
This legislative move is part of a broader trend across several U.S. states considering the inclusion of cryptocurrencies in their investment strategies. While various states have proposed similar legislation since 2025, only Texas, Arizona, and New Hampshire have successfully enacted laws enabling state-level crypto reserves.
As of this week, the future of Rose’s proposal remains uncertain, as it has been forwarded to the Committee on Banking and Insurance for further consideration. Meanwhile, on a national level, the US Senate has delayed progress on the CLARITY Act, a bill designed to establish a comprehensive digital asset market structure. This federal proposal has attracted criticism from industry stakeholders, particularly concerning its provisions affecting decentralized finance and stablecoin rewards.
The outcome of these legislative efforts, both in West Virginia and on a national scale, could significantly influence the regulatory landscape for digital assets in the United States.