Another US State Backs Bitcoin as West Virginia Pushes Crypto Treasury Bill

Ben Graham · 13 horas atrás

West Virginia lawmakers introduced a bill that would let the state treasury invest in Bitcoin and approve stablecoins. Although Bitcoin is down 1% overnight, it is holding strong above $95,000, currently trading at $95,600. A hold of $94,000 over the weekend could provide fuel for a push toward $100,000 next week.

While the broader crypto market remains strong following a strong start to 2026, the combined market cap is down -0.9% over the past 24 hours, currently at $3.32 trillion. This pullback is mostly due to Elon Musk’s X killing the InfoFi sector by removing API access for hundreds of projects, including Kaiti AI, Cookie DAO, and others, in an attempt to combat the growing AI slop on the platform.

Back to the West Virginia news, the move fits a broader trend: US states are seeking inflation hedges and alternatives to cash. State-level Bitcoin adoption continues to creep from idea to policy. And that matters more than most price charts. When governments discuss holding Bitcoin, they view it less as a gamble and more as a long-term reserve.

Currently, three US states, Arizona, New Hampshire, and Texas, have had their respective Bitcoin reserve bills enacted, allowing them to hold Bitcoin and other digital assets. As of late 2025, Texas is the only state to have purchased BTC, investing $5M in BlackRock’s IBIT Bitcoin ETF and an additional $5M in self-custody.

What Exactly Did West Virginia Propose?

West Virginia just dropped SB143.

Up to 10% of state funds could flow into Bitcoin as an inflation shield. pic.twitter.com/7gLjqtRV0C

— TFTC (@TFTC21) January 15, 2026

State Senator Chris Rose introduced the Inflation Protection Act. The bill would allow West Virginia’s treasury to buy precious metals, certain digital assets, and stablecoins.

Here’s the key filter. Any digital asset must have held a market cap above $750Bn in the previous year. Right now, that only applies to Bitcoin, as Ethereum, the second-largest digital asset, only has a market cap of $390Bn, compared to Bitcoin’s $1.9 trillion valuation.

Think of market cap like the price tag of an entire company. A $750Bn tag signals size, liquidity, and longevity. While Ethereum is widely regarded as the clear number two to Bitcoin, having been around for over ten years and powering a $75Bn DeFi ecosystem, its market cap, which is below the Inflation Protection Act threshold, excludes it as a purchasable asset for West Virginia.

The bill also sets rules on storage. The state could hold Bitcoin through a qualified custodian, an exchange-traded product, or a secure custody setup. That matters because this is where many crypto losses occur, and, put simply, it means West Virginia won’t be buying its Bitcoin on an exchange and either leaving it there or managing its own custody of the tokens.

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Why This Matters for Everyday Bitcoin Holders

This is not West Virginia buying Bitcoin tomorrow. Lawmakers are saying Bitcoin belongs in the same conversation as precious metals, which is a huge declaration for digital assets.

Other states have already crossed that line. Texas passed a bill establishing a Strategic Bitcoin Reserve in 2025, which they acted on a few months back with a $5M investment in BlackRock’s Bitcoin ETF.

New Hampshire allows up to 5% of state funds to be invested in Bitcoin, while Arizona passed a bill last year that allows ‘rainy day funds’ to purchase Bitcoin, with official documentation stating that Arizona could purchase 16,212 BTC assuming a BTC price of $95,669.

For regular investors, this adds legitimacy to the entire industry. Governments move slowly and avoid volatile and weak assets, and adding Bitcoin and other digital assets to state reserves is a bullish signal for the long-term success of the crypto sector.

It also supports the “digital gold” thesis that has become a widely used moniker for BTC in the past few years. Bitcoin’s fixed supply of 21 million tokens makes it attractive during inflation, especially when cash continues to lose buying power.

(SOURCE: Bitcoin Reserve Monitor)

How This Fits the Bigger US Crypto Picture

West Virginia is not acting in isolation. More than two dozen U.S. states have considered Bitcoin reserve bills since 2024, according to the graphic above from BitcoinReserveMonitor.com. At the federal level, the US also shifted. In 2025, President Trump signed an executive order establishing a national strategic Bitcoin reserve, according to Politico.

This slow drip of policy matters more than short-term price moves. It builds a floor of long-term demand and normalizes Bitcoin in public finance.

We have seen similar paths in places like Wyoming, which launched Wyoming’s state-backed stablecoin. Governments are testing crypto on a step-by-step basis.

This bill is not yet the law. Lawmakers sent it to the Banking and Insurance Committee, and it may stall. Even if it passes, buying Bitcoin exposes public funds to volatility. Bitcoin can experience 30% price swings over just a few months, which scares investors.

For personal investors, this is not a buy signal. It confirms a long-term trend, but I have to stress that Bitcoin remains a high-risk asset. Never invest money you need for rent or groceries. Still, when states debate whether to hold Bitcoin, the asset inches closer to financial adulthood.

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