West Virginia lawmakers have taken a step to allow the state to invest some of its cash in gold, stablecoins and supercap cryptocurrencies. Senate Bill 143, introduced on January 15, 2026, is called the Inflation Protection Act and was introduced by State Senator Chris Rose.
Details of the Anti-Inflation Law
According to the proposal, the State Finance Commission could place up to 10% of certain Treasury accounts on a limited list of nontraditional assets.
These assets include precious metals such as gold and silver, regulatory-approved stablecoins, and digital currencies that meet very high market capitalization tests. The bill sets that threshold at an average of $750 billion over the previous calendar year.
The door to market capitalization is narrow
According to the report, only the largest cryptocurrencies can pass that criteria. At present, given the USD 750 billion requirement, Bitcoin is effectively the only eligible digital asset. This choice was framed as a way to limit exposure to volatile or fringe tokens.
How can states own these assets?
This bill does not require one custody model. Instead, the Treasury will be able to store metals and cryptocurrencies directly or use exchange-traded products or other approved custody structures. The language also considers tools like staking and ETPs as options for generating profits, but with rules aimed at mitigating operational and security risks.
Policy changes at the state level
Mr. Rose and his supporters present the move as a hedge against inflation and a way to diversify reserves beyond bonds and cash. Opponents are likely to pursue issues such as fiduciary duties, volatility, and the risks of introducing assets with volatile prices.
This argument draws on a broader trend. Several US states are exploring ways to create strategic reserves that include precious metals and cryptocurrencies.
what happens next
SB 143 has been assigned to the Banking and Insurance Committee and will undergo further consideration before being voted on. Before moving forward, lawmakers will consider technical safeguards, reporting rules, and methods for auditing and ensuring stock holdings.
If the plan were implemented, West Virginia would direct a modest and capped portion (10%) of eligible funds to a limited number of assets to preserve purchasing power.
Supporters say this is a cautious experiment. Critics say the risk profile of cryptocurrencies still requires caution. Either way, the proposal will prompt a detailed policy debate in Charleston about how public funds should be managed when new financial tools are on the table.
Featured image from Corcoran, chart from TradingView
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