West Virginia could become the next US state to open its doors to cryptocurrencies in public finance. Republican Senator Chris Rose has introduced a bill that would allow the state treasury to invest in precious metals, selected digital assets, and stablecoins. The bill is called the Inflation Protection Act and aims to protect the value of state reserves against inflation.
According to the text of the bill, the State Treasury Management Board could invest in digital assets with a market capitalization exceeding $750 billion in the previous calendar year. In January of this year, only Bitcoin met this condition.
Therefore, if the bill passes the legislative process and is signed by the governor, West Virginia would have the option of holding BTC as part of its reserves, similar to how states currently hold gold, for example.
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Strict rules for storage and stablecoins
The law also establishes clear rules for the management of these assets. Digital currencies could be held through a qualified custodian, in an exchange-traded product (ETF), or through a secure custody solution.
In the case of stablecoins, only those that have obtained regulatory approval at the federal level or at the level of the various US states could be invested in. Thus, the bill combines openness to cryptocurrencies with an emphasis on regulatory security.
West Virginia is following a trend that has been developing in the United States for several years. Several states have introduced proposals to create state-level “cryptocurrency reserves.”
Although many lawmakers introduced similar legislation in 2025, only Texas, Arizona, and New Hampshire actually passed the laws. It is still unclear whether West Virginia will join them. The proposal has been referred to the Banking and Insurance Committee, and its future will depend on political support in the local parliament.
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Federal uncertainty: Senate postpones key bill
The proposal comes at a time when federal policy around cryptocurrencies faces uncertainty. The US Senate has postponed debate on the bill known as the CLARITY Act, which aims to define the structure of the digital asset market in the United States.
This proposal faces criticism from the cryptocurrency industry, particularly for changes relating to decentralized finance, stablecoin rewards, and the scope of financial regulators’ powers.
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