West Virginia introduces legislation to include Bitcoin in treasury to hedge against inflation
West Virginia introduces legislation to incorporate Bitcoin in treasury to hedge in opposition to inflation West Virginia introduces legislation to incorporate Bitcoin in treasury to hedge in opposition to inflation
West Virginia joins a rising number of states pondering alongside side Bitcoin of their treasuries to hedge in opposition to inflation.
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Divulge Senator Chris Rose has introduced legislation to enable the West Virginia Treasury to diversify its holdings by alongside side digital property and precious metals.
The Inflation Protection Act of 2025, submitted on Feb. 14, proposes allowing investment in digital property with a market capitalization exceeding $750 billion.
Presently, this is applicable handiest to Bitcoin (BTC), with Ethereum’s (ETH) $328.3 billion market cap being bigger than 50% beneath the mandated threshold.
The bill would cap investments in digital property and precious metals at 10% of full treasury funds, providing flexibility to withhold property both on-chain or by trade-traded funds (ETFs).
Proponents argue that such diversification could presumably presumably provide a hedge in opposition to inflation and financial instability, specifically as concerns upward push over the long-duration of time impression of deficit spending at both exclaim and federal ranges.
Increasing pattern amongst states
West Virginia is amongst almost two dozen US states which could presumably presumably per chance be pondering digital asset reserves as a style to give protection to public funds from currency devaluation. The pattern started with Wyoming in 2024.
On Feb. 6, Utah’s Home of Representatives accredited a the same bill, which now awaits a Senate vote. If handed, it can presumably presumably presumably authorize the exclaim’s treasury to allocate funds into Bitcoin, high-tag altcoins, and stablecoins, reflecting a broader acceptance of digital property as legit reserve instruments.
Kentucky introduced legislation the identical day to enable up to 10% of exclaim funds to be allotted to Bitcoin and other digital property. The transfer follows increasing legislative passion in digital currencies as an alternative retailer of tag amid concerns over inflation and rising national debt.
Michigan adopted swimsuit on Feb. 13, with Representatives Bryan Posthumus and Ron Robinson proposing a digital asset reserve bill. Not just like the same measures in other states, the Michigan proposal does not specify obstacles on asset kinds, doubtlessly thinking a broader vary of crypto investments.
Other states comprise Texas, Wyoming, North Dakota, North Carolina, South Dakota, Massachusetts, Recent Hampshire, Ohio, Pennsylvania, Maryland, Iowa, Arizona, Oklahoma, Tennessee and Wisconsin. Meanwhile, lawmakers and regulators in different other states luxuriate in known as for the same legislative action.
At the federal level, President Donald Trump lately directed a working workers to fetch the feasibility of a national digital asset reserve as section of an govt whisper signed last month.
The initiative has fueled speculation that particular person states could presumably presumably per chance act sooner than federal policymakers in integrating Bitcoin into govt financial suggestions, specifically as the regulatory panorama for digital property continues to evolve.
Doable financial implications
Analysts counsel that increasing exclaim-level adoption of Bitcoin reserves could presumably presumably per chance power extra quiz for digital property, doubtlessly influencing market prices and broader financial market tendencies.
Per a most up-to-date prognosis by asset management agency VanEck, states pursuing such legislation could presumably presumably per chance make a contribution up to $23 billion in Bitcoin quiz.
This pattern could presumably presumably per chance additionally help increased institutional involvement in the digital asset residence as exclaim treasuries launch treating Bitcoin as a sound reserve asset alongside used stores of tag corresponding to gold.
As more states pursue the same initiatives, financial consultants predict that legislative efforts to integrate digital property into public funds will assemble further traction. However, critics warn that Bitcoin’s tag volatility could presumably presumably per chance pose risks to public treasuries, requiring careful be troubled management suggestions.
The West Virginia bill will now proceed to committee evaluate prior to further legislative consideration, with lawmakers and analysts closely gazing how the exclaim navigates the challenges and opportunities of digital asset adoption.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his abilities worldwide for over a decade. That specialise in financial journalism, he now specializes in crypto reporting.
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