Crypto Coming to Capitol Hill? West Virginia Proposes State Investment Bill
Lawmakers in West Virginia have moved to allow the state to put a chunk of its money into gold, stablecoins and major cryptocurrencies. Senate Bill 143, introduced on January 15, 2026, is called the Financial Stability Protection Act and was introduced by State Senator Chris Rose.
Details of the Bankruptcy Protection Act
According to this proposal, the State Treasury Board can include up to 10% of certain treasury accounts in the limited list of non-traditional assets.
Those assets will include precious metals such as gold and silver, regulatory-approved stablecoins, and digital currencies that meet the highest market-cap test. The bill sets that limit at US$750 billion estimated in the previous calendar year.
Small Market Cap Department
Based on reports, only major cryptocurrencies can clear that bar. For now, that effectively names Bitcoin as the only relevant digital asset, given the $750 billion requirement. That option was designed as a way to reduce exposure to volatile or fringe tokens.
How the State Can Hold These Assets
The bill does not require a single custody model. Instead, it allows the treasurer to hold metals or crypto directly, using exchange-traded products, or other authorized custody setups. The language also considers instruments such as staking or ETPs as options for generating returns, but attaches rules aimed at reducing operational and security risks.
Policy Change at the Government Level
Rose and supporters presented the move as a way to fight inflation and a way to diversify reserves beyond bonds and cash. Opponents are likely to stress fiduciary duty, flexibility, and the risks of receiving assets with rapid price fluctuations.
The debate is taking on a broader trend: several US states have been exploring ways to create strategic reserves involving precious metals or crypto.
What Happens Next
SB 143 has been assigned to the Banking and Insurance Committee, and is expected to be reviewed before any vote. Lawmakers will weigh technical safeguards, reporting rules, and how to audit and verify assets before moving the measure forward.
Once implemented, the program would allow West Virginia to allocate a small, limited portion—10%—of matching funds to a small set of assets aimed at preserving purchasing power.
Proponents argue that it is a careful test; critics say the risk profile of crypto still needs to be taken care of. Either way, the proposal will force a detailed policy discussion in Charleston about how public money should be managed if new financial instruments are on the table.
Featured image from Corcoran, chart from TradingView
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