Senator Chris Rose has introduced legislation to enable the Treasury of West Virginia to diversify its participations by including digital assets and precious metals.
The Inflation protection law of 2025Submitted on February 14, proposes to allow investments in digital assets with a market capitalization of more than $ 750 billion.
Currently this only applies to Bitcoin (BTC), where the market capitalization of $ 328.3 billion from Ethereum (ETH) is more than 50% below the mandatory threshold.
The bill would conclude investments in digital assets and precious metals on 10% of the total treasury funds, which offered flexibility to keep assets, either in the chain or via exhibition-related funds (ETFs).
Proponents claim that such a diversification can offer a cover against inflation and fiscal instability, in particular as the concern increases on the long -term effects of shortage expenditure at both national and federal level.
Growing trend between states
West Virginia is one of the nearly two dozen American states that consider digital asset reserves as a strategy to protect public resources against currency evaluation. The trend started with Wyoming in 2024.
On 6 February, the House of Representatives of Utah approved a similar bill, which is now waiting for a voice from the Senate. If it is assumed, it would allow the Treasury of the State to allocate funds to Bitcoin, high-quality Altcoins and Stablecoins, which reflects a broader acceptance of digital assets as legitimate reserve instruments.
Kentucky introduced the same day legislation to allow up to 10% of state funds to Bitcoin and other digital assets. The relocation follows increasing legislative interest in digital currencies as an alternative value of value in the midst of concern about inflation and rising national debt.
Michigan followed on February 13, with representatives Bryan Posthumus and Ron Robinson who introduce a digital activa reserve account. In contrast to comparable measures in other states, the Michigan proposal does not specify any restrictions on activation types, making it possible to have a broader range of crypto investments possible.
Other states are Texas, Wyoming, North Dakota, North Carolina, South Dakota, Massachusetts, New Hampshire, Ohio, Pennsylvania, Maryland, Iowa, Arizona, Oklahoma, Tennessee and Wisconsin. In the meantime, legislators and regulators in various other states have called for comparable legislative action.
At the federal level, President Donald Trump recently dedicated a working group to explore the feasibility of a national digital assets reserve as part of an executive order signed last month.
The initiative fueled speculation that individual states can act for federal policy makers in integrating Bitcoin in government financial strategies, in particular because the regulations landscape for digital assets continues to evolve.
Possible economic implications
Analysts suggest that increasing the acceptance of Bitcoin reserves at state level could stimulate an additional demand for digital assets, making it possible to influence market prices and wider trends in the financial market.
According to a recent analysis by Asset Management Firm Vaneck, states that pursue such legislation can contribute to $ 23 billion to Bitcoin question.
This trend can also encourage a greater institutional involvement in the digital assets space, since state principles begin to treat Bitcoin as a legitimate reserve -active in addition to traditional value stores such as gold.
As more states strive for comparable initiatives, financial experts predict that legislative efforts to integrate digital assets into public funds will get further grip. However, critics warn that the price volatility of Bitcoin could be risks for public treasury boxes, which requires careful risk management strategies.
The West Virginia Bill will now proceed to committee provision before further legislative consideration, in which legislators and analysts closely monitor how the state navigates the challenges and opportunities of digital assets acceptance.
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