The US state of West Virginia is looking at new ways to protect its state assets against inflation and financial uncertainty. A bill submitted this week should give the state treasury more room to look beyond traditional investments.
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Only Bitcoin is eligible
Republican State Senator Chris Rose has introduced a proposal that would amend the legislation surrounding the management of the state treasury. The plan called ‘Inflation Protection Act’ makes it possible for the Treasury Board to invest in precious metals, stablecoins and crypto with a very high market capitalization.
The threshold is remarkably high. Only crypto with a market value of more than $750 billion in the previous calendar year is eligible. In practice, this means that only Bitcoin (BTC) meets that requirement. Other major crypto coins will therefore remain out of the picture for the time being.
According to the text of the bill, the state may hold this crypto through a recognized custodian, an investment fund or a secure private storage solution. Stablecoins are only allowed if they are explicitly approved by the federal government or by individual states.
West Virginia is following the example of other states
It is not the first time that an American state has looked at crypto as a reserve. Similar proposals were introduced in several states in 2025. Ultimately, only Texas, Arizona and New Hampshire actually passed legislation allowing state reserves in Bitcoin.
Whether West Virginia can join that list is still uncertain. The bill has now been forwarded to the Banking and Insurance Commission. It will become clear whether there is sufficient political support to continue processing the proposal.
The US government also now owns a significant Bitcoin reserve. According to figures from BitcoinTreasuries, this consists of 328,372 BTC, entirely derived from seizures, making the United States one of the largest Bitcoin holders in the world.
Uncertainty surrounding CLARITY Act
The timing is striking. At the federal level, consideration of the so-called CLARITY Act has been postponed in the US Senate. This law should provide clarity about the market structure of crypto in the US.
This federal law has met with strong criticism from the sector. Rules surrounding DeFi, stablecoin rewards and the role of regulators are particularly divisive. Critics from the sector fear that unclear regulations could slow down innovation.
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Source: https://newsbit.nl/amerikaanse-staat-wil-investeren-in-bitcoin-na-nieuw-wetsvoorstel/
