**West Virginia Lawmakers Propose State Fund Investments in Bitcoin**
West Virginia lawmakers have introduced a groundbreaking piece of legislation that would allow the state treasurer to invest a portion of public funds in bitcoin, precious metals, and regulated stablecoins. This initiative represents a significant move towards incorporating digital assets into the financial framework at the state level.
During the 2026 regular legislative session, Senator Chris Rose presented Senate Bill 143, which aims to establish a new section of state law known as the “Inflation Protection Act of 2026.” This bill would enable the Board of Treasury Investments to allocate up to 10% of the funds it manages into gold, silver, platinum, and select digital assets, adhering to existing investment regulations.
Under the proposed legislation, West Virginia would be permitted to invest in digital assets that have maintained an average market capitalization exceeding $750 billion over the previous calendar year. Currently, this criterion restricts eligibility to bitcoin, although the asset is not explicitly named in the statute. The bill explicitly states, “The purpose of this bill is to empower the Treasurer to invest in gold, silver, and bitcoin.” Additionally, it allows for investments in stablecoins that have received regulatory approval at either the federal or state level.
The proposed 10% cap would apply at the time of investment. If the value of the assets increases and exceeds this threshold, the board would not be obligated to sell any holdings. However, it would be prohibited from making further purchases until the allocation falls back below the limit.
The legislation also outlines stringent custody requirements for digital assets. These holdings must be secured either directly by the West Virginia treasurer through a defined secure custody system, by a qualified third-party custodian, or through a registered exchange-traded product. The bill specifies standards for key control, geographic redundancy, access controls, audits, and disaster recovery.
In addition to holding digital assets, the bill permits the treasurer to engage in yield-generating activities. Digital assets could be staked using third-party providers, provided that legal ownership remains with West Virginia. The treasurer would also have the authority to loan digital assets under regulations designed to mitigate financial risk.
Investments in precious metals could be managed through exchange-traded products, by qualified custodians, or directly in physical form by the state. The bill allows for cooperative custody arrangements with other states, subject to rules set by the treasurer. However, West Virginia retirement funds would face stricter limitations, allowing investments only in exchange-traded products registered with federal or state regulators.
As West Virginia takes this progressive step towards digital asset investment, it could pave the way for other states to consider similar measures, potentially reshaping the landscape of state-level finance.
**FAQ**
**Q: What is the main purpose of the proposed legislation in West Virginia?**
A: The proposed legislation aims to authorize the state treasurer to invest a portion of public funds in bitcoin, precious metals, and regulated stablecoins, enhancing the state’s financial strategy by integrating digital assets.
