West Virginia bill eyes Bitcoin investment for treasury holdings

West Virginia State Senator Chris Rose has introduced a bill that could allow the state treasury to invest in digital assets and precious metals as a hedge against inflation.

Introduced on February 14, "The Inflation Protection Act of 2025" outlines provisions for the state treasury to invest up to 10% of its total funds into these alternative assets.

According to the bill's criteria, only digital assets with a market capitalisation exceeding $750 billion would be eligible.

Currently, Bitcoin (CRYPTO:BTC) is the only digital asset that meets this requirement.

The proposal also specifies that the state can hold these assets directly onchain or through exchange-traded funds (ETFs).

This bill aligns with a growing trend among states to explore Bitcoin and other digital assets as strategic reserves to mitigate currency inflation, according to reports from financial analysts.

The bill would allow the state treasurer to stake or loan the state's digital asset holdings.

Other states have also taken steps toward considering digital asset reserves.

In Utah, a bill that would allow the state treasury to invest in Bitcoin, select altcoins, and stablecoins passed the House of Representatives on February 6.

Kentucky introduced a similar bill on the same day, proposing to allocate up to 10% of state funds to digital assets, including Bitcoin.

Michigan has also introduced a strategic digital asset reserve proposal, although without specific restrictions on the types of digital assets to be included.

These legislative efforts reflect a broader exploration of digital assets as a potential hedge against currency devaluation.

"Strategic reserve legislation could drive $23 billion of demand for Bitcoin," based on a recent analysis from VanEck.

At the time of reporting, the Bitcoin (BTC) price was $96,513.30.