TLDR
- WV bill would allow up to 10% of public funds in bitcoin and precious metals
- Bitcoin is currently the only digital asset meeting the $750B cap rule
- Retirement funds can only invest through exchange-traded products
- Bill permits staking and lending digital assets while keeping state ownership
West Virginia lawmakers have proposed a bill to allow the state to invest a portion of public funds in bitcoin and precious metals. Senate Bill 143, known as the “Inflation Protection Act of 2026,” would authorize up to 10% of funds managed by the state treasurer to be allocated to gold, silver, platinum, and approved digital assets.
Bill Allows Bitcoin and Precious Metals for State Investments
Senate Bill 143, introduced by Sen. Chris Rose, would create the “Inflation Protection Act of 2026.” This proposed legislation seeks to give the West Virginia State Treasurer new authority to allocate up to 10% of public funds into assets such as gold, silver, platinum, and select digital assets.
The bill does not name bitcoin directly, but it sets a $750 billion average market capitalization requirement over the past year. At the time of the bill’s introduction, bitcoin is the only digital asset meeting that threshold. The proposal has been referred to the Senate Committee on Banking and Insurance and will later move to the Committee on Finance for further review.
BREAKING: West Virginia introduces Bitcoin Reserve Bill
Senate Bill 143 Would Allow the State Treasury to Invest up to 10% in:
▸ #Bitcoin ($750B+ Market Cap Required)
▸ Gold, Silver, Platinum
▸ Approved StablecoinsWest Virginia joins the growing wave of US states treating… pic.twitter.com/Yu4VqV3L2J
— Crypto Patel (@CryptoPatel) January 16, 2026
The bill also includes approved stablecoins that have received state or federal regulatory clearance. This addition broadens the scope of digital assets that can be considered for investment.
Strict Limits and Custody Rules for Digital Assets
The 10% cap on such investments applies only at the time of purchase. If asset values increase later and cause the allocation to rise above 10%, the treasurer would be barred from making further purchases but would not be required to sell existing holdings.
To ensure security, the bill defines clear custody standards for digital assets. It permits custody directly by the treasurer or through qualified third-party custodians. Registered exchange-traded products may also be used. The bill outlines technical requirements, including key control, geographic redundancy, secure access, and audit protocols.
“The purpose of this bill is to empower the Treasurer to invest in gold, silver, and bitcoin,” the final line of the bill states, summarizing its main goal.
Yield Opportunities with Staking and Lending Permitted
The proposal allows the treasurer to use digital assets to earn additional returns through lending or staking. However, legal ownership must remain with the state. Staking can be carried out through approved third-party providers. Lending is allowed under risk management rules designed to protect state assets.
Precious metals may be held physically, through exchange-traded products, or via qualified custodians. The bill also allows cooperative custody agreements with other states if they meet state guidelines.
These methods are meant to ensure flexibility while keeping public funds secure under regulated systems.
Retirement Funds Face Stricter Investment Rules
While the broader state funds may hold digital assets or metals directly, retirement systems would be limited. Under the bill, they may only invest in registered exchange-traded products. This rule ensures additional caution in managing pension-related funds.
The bill grants the treasurer the power to propose additional rules to implement the law, but those would require legislative approval before taking effect.
Several other U.S. states have shown similar interest in adding digital assets to public investment strategies. Rhode Island recently proposed tax exemptions for small-scale bitcoin transactions as part of a pilot program. The national conversation around integrating digital assets into state finance continues to evolve.
