West Virginia Senator Proposes Bill to Invest State Reserves in Crypto

West Virginia Senator Introduces Bill to Invest State Reserves in Digital Assets

A West Virginia lawmaker has proposed a bill that, if enacted, would allow the state government to invest up to 10% of its public funds in Bitcoin (BTC), stablecoins, and/or precious metals. Senate Bill 465, introduced by Republican state Senator Chris Rose, aims to enable the Board of Treasury Investments of West Virginia to invest in crypto assets with market capitalizations exceeding $750 billion on average over the previous calendar year.

Currently, only Bitcoin meets the market capitalization criteria. The bill does not impose the same market capitalization requirements on stablecoins, but they must have appropriate regulatory approval in the United States. The legislation also allows the Board of Treasury Investments to purchase silver, gold, and platinum.

Any crypto assets acquired by the state treasurer must be directly held through a secure custody solution, on behalf of the state by a qualified custodian, or through an exchange-traded fund (ETF). The bill also enables the state treasurer to stake crypto assets.

This proposal is not an isolated incident. Lawmakers in other states have been exploring similar ideas. Texas senators are scheduled to hold a hearing on a crypto reserves bill, and a "Strategic Bitcoin Reserve Act" is currently making its way through the Arizona legislative process. Additionally, lawmakers in Utah are considering a parallel proposal.

The potential investment in digital assets by state governments could have significant implications for the crypto market and the broader economy. As more institutions and governments recognize the potential of cryptocurrencies, the market may experience increased stability and growth. However, it is essential to monitor the regulatory environment and ensure that investments are made responsibly and with proper risk management.