• West Virginia lawmakers launched the Inflation Safety Act to allow the funding of ten % of state reserves into valuable metals and Bitcoin.
  • Digital belongings should preserve a market capitalisation exceeding 750 billion {dollars} to qualify which successfully limits the state to Bitcoin alone.
  • The proposal is presently below evaluate by the Committee on Banking and Insurance coverage to guage dangers related to volatility and fiduciary duties.

A invoice launched this week in West Virginia would enable the state to place as much as 10% of its treasury reserves into valuable metals, sure digital belongings and permitted stablecoins, below a proposal framed as an inflation hedge.

The measure, sponsored by lawmaker Chris Rose and titled the Inflation Safety Act, units a excessive bar for crypto eligibility. First, any digital asset would wish to have held a market capitalisation above US$750 billion (AU$1.1 trillion) within the prior calendar yr. 

Primarily based on that threshold, the draft would successfully restrict the state’s crypto publicity to Bitcoin. Like many different states that handed related legal guidelines outlined.

Learn extra: Analysts Say Stress-Testing Gold vs. Bitcoin Reveals a Clear Winner

West Virginia to Use Treasury to Purchase Bitcoin

The proposal outlines a number of custody routes for any digital belongings the state holds, together with use of a certified third-party custodian, an exchange-traded product, or one other safe custody resolution. Stablecoins can be topic to tighter limits, requiring express regulatory approval from both the US federal authorities or particular person states earlier than the treasury might make investments.

If it passes, West Virginia would be part of a small group of states exploring direct publicity to crypto and onerous belongings, as related payments have been launched throughout the US in 2025, however solely a restricted variety of states, together with Texas, Arizona and New Hampshire, have handed legal guidelines creating some type of state-level crypto reserve or funding framework. 

The West Virginia invoice has been referred to the legislature’s Committee on Banking and Insurance coverage, with its prospects unclear because it faces debate over volatility, danger controls and fiduciary accountability.

Associated: Australia’s Crypto Industry Enters Its “Training Phase” as Regulation Turns Real

The submit West Virginia Lawmaker Pushes to Open State Treasury to Bitcoin and Stablecoins appeared first on Crypto News Australia.