West Virginia proposes 10% Bitcoin treasury allocation

West Virginia has introduced the Inflation Protection Act of 2025, a bill allowing the state treasury to allocate up to 10% of its funds into Bitcoin (CRYPTO:BTC), stablecoins, and precious metals.

State Senator Chris Rose, the bill’s sponsor, stated that this move aims to provide the state with greater financial sovereignty and act as a hedge against inflation.  

The legislation sets strict criteria for eligible assets, requiring a market capitalisation of at least $750 billion.  

Currently, Bitcoin is the only digital asset meeting this threshold.  

The funds would be sourced from long-term assets such as pension and severance tax funds, excluding day-to-day operational accounts.  

Investments could be held on-chain or through exchange-traded funds (ETFs), offering flexibility while maintaining security.  

Senator Rose emphasised that adopting Bitcoin at the state level could enhance financial independence and protect against potential risks associated with centralised systems like central bank digital currencies (CBDCs).  

“People want decentralised currency. They want freedom,” Rose explained in an interview.  

The bill has sparked debate among lawmakers and financial experts.  

Proponents argue that Bitcoin’s potential as a store of value could stabilise state finances amid inflationary pressures and deficit spending.  

Critics, however, caution against the volatility of cryptocurrency markets, which could pose risks to public funds.  

West Virginia joins a growing list of U.S. states exploring digital asset reserves.  

Similar proposals have been introduced in states like Arizona, Texas, Utah, and Kentucky.  

These initiatives reflect increasing recognition of Bitcoin's role in modern financial strategies.  

While some states have advanced their bills to legislative votes, others remain in committee stages.  

Senator Rose remains optimistic about the bill’s prospects in West Virginia, noting that state officials—including Governor Patrick Morrisey—are supportive of integrating crypto into financial planning.  

At the time of reporting, the Bitcoin (BTC) price was $83,507.84.