A newly introduced bill would allow the state treasury to diversify part of its holdings into precious metals, select digital assets, and stablecoins as a hedge against inflation.
Key Takeaways
- •The proposal would allow up to 10% of state treasury funds to be invested in alternative assets.
- •Only digital assets with a market capitalization above $750 billion would qualify.
- •Bitcoin is currently the only cryptocurrency that meets the requirement.
- •The bill is still in early stages and faces legislative review.
The proposal was put forward by Chris Rose, who submitted legislation to amend the state’s financial code. Known as the Inflation Protection Act, the bill would authorize the state’s Board of Treasury to move beyond traditional reserve instruments and include a limited allocation to non-traditional assets.
Under the draft framework, eligibility is narrowly defined. Digital assets must have recorded a market capitalization exceeding $750 billion during the previous calendar year — a threshold currently met only by Bitcoin. Alongside digital assets, the treasury would be permitted to invest in precious metals and stablecoins, provided those stablecoins have received regulatory approval from either US federal authorities or individual states.
The bill also specifies how these assets may be held. Digital assets could be stored with a qualified custodian, accessed through exchange-traded products, or secured using approved custody solutions designed to meet institutional standards.
How the Proposal Fits into a Broader State Trend
West Virginia’s initiative mirrors a growing trend among US states examining whether limited crypto exposure could strengthen public reserves over the long term. While many similar bills were introduced across the country in 2025, only Texas, Arizona, and New Hampshire have so far enacted laws permitting state-level crypto reserves.
Whether West Virginia will join that list remains unclear. The bill has been referred to the legislature’s Committee on Banking and Insurance, where it will be reviewed before any broader vote. As of now, there is no public indication that it has secured sufficient political support.
The proposal also arrives amid regulatory uncertainty at the federal level. In Washington, lawmakers have recently delayed progress on comprehensive digital asset legislation intended to clarify market structure across the United States. That delay has left states with greater room — and responsibility — to define their own approaches.
If passed, the Inflation Protection Act would mark a cautious but symbolic shift in how West Virginia manages its reserves, blending traditional stores of value with carefully constrained exposure to digital assets.