WV Senator Chris Rose Proposes Digital Asset Investment Bill
On February 14, 2025, West Virginia State Senator Chris Rose introduced the "Inflation Protection Act of 2025," a bill designed to diversify the state's treasury investments by incorporating digital assets and precious metals. This legislative move aims to hedge against inflation and enhance the state's financial resilience.
Key Provisions of the Bill:
Investment Allocation: The bill permits the West Virginia Board of Treasury Investments to allocate up to 10% of its total funds into digital assets and precious metals. This strategic diversification seeks to mitigate risks associated with traditional financial instruments.
Digital Asset Criteria: Eligible digital assets are defined as those with a market capitalization exceeding $750 billion. As of now, Bitcoin (BTC) is the sole cryptocurrency meeting this threshold. Stablecoins regulated within the United States are also considered permissible investments under the bill.
Custody Options: The legislation provides flexibility in asset management, allowing the state to hold these investments directly on-chain or through exchange-traded funds (ETFs). This approach offers a balance between security and accessibility.
Senator Rose's initiative reflects a broader trend among U.S. states exploring the inclusion of digital assets in their treasuries. Following President Donald Trump's directive on January 23, 2025, to assess the feasibility of a federal digital asset reserve, several states have introduced similar proposals. For instance, Utah's House of Representatives passed a bill on February 6 authorizing state treasury investments in Bitcoin and select altcoins, which is now under Senate consideration. On the same day, Kentucky introduced legislation permitting up to 10% of state funds to be allocated to digital assets, including Bitcoin. Michigan followed suit on February 13 with a proposal for a digital asset reserve, notably without restrictions on the types of assets included.
The West Virginia bill has been referred to the state Senate's Committee on Banking and Insurance and will subsequently move to the Committee of Finance for further deliberation. If enacted, this legislation could position West Virginia at the forefront of financial innovation, potentially attracting blockchain enterprises and tech talent to the state.
While the potential benefits of such diversification include enhanced financial stability and a hedge against inflation, considerations regarding market volatility and regulatory uncertainties remain. As the legislative process unfolds, these factors will be critical in determining the bill's viability and potential impact on West Virginia's financial strategy.