West Virginia has introduced a groundbreaking bill that would allow the state to invest up to 10% of its public funds in Bitcoin and other approved assets. The legislation, known as Senate Bill 143 or the Inflation Protection Act of 2026, was introduced by State Senator Chris Rose and is currently under review by the state legislature.
The bill explicitly permits the West Virginia Board of Treasury Investments to allocate funds into Bitcoin, gold, silver, platinum, approved stablecoins, and regulated cryptocurrency ETFs. However, it imposes a strict eligibility criterion: any digital asset must have had an average market value of at least $750 billion in the preceding year. Currently, Bitcoin is the only cryptocurrency that meets this threshold, with a market capitalization exceeding $1.5 trillion.
The proposal includes specific safeguards. If Bitcoin's value exceeds 10% of the fund, the state is not forced to sell but must suspend new purchases until the allocation falls back below the limit. It mandates institutional-grade custody, secure private key storage, multi-signature protection, and the use of regulated custodians or ETFs. Some versions of the bill also allow for staking and lending to generate additional yield, provided the state retains ownership of the assets.
This move is part of a broader trend among U.S. states exploring Bitcoin's role in public finance. Arizona is advancing a parallel, more operational approach with Senate Bill 1043, which would allow state agencies to accept Bitcoin for taxes and fees (with immediate conversion to USD), and SB1042, permitting a strategic Bitcoin reserve of up to 10% for certain funds. Other states like Texas and New Hampshire have already taken concrete steps, with Texas making a $10 million treasury purchase.
Proponents argue Bitcoin serves as a long-term hedge against inflation and the devaluation of the U.S. dollar, especially with national debt surpassing $35 trillion. Critics caution about Bitcoin's volatility and the risks of exposing public funds. The bill's progression is uncertain, but its introduction signals a significant shift in viewing Bitcoin not just as a speculative asset but as potential public financial infrastructure.
