West Virginia Moves to Add Bitcoin and Gold to State Treasury

West Virginia lawmakers have introduced Senate Bill 143, dubbed the Inflation Protection Act of 2026, aiming to diversify the state’s reserves with Bitcoin and gold. The proposal would authorize the Treasury to allocate a portion of public funds into these assets as a hedge against inflation and currency risk.

The bill sets clear guardrails. Bitcoin must maintain a minimum market capitalization of $750 billion before the Treasury can purchase it, ensuring the asset meets a threshold of liquidity and maturity. Gold, already a traditional hedge, would be paired with Bitcoin to balance volatility with stability. The legislation was formally referred to committee for review in January 2026.

Supporters argue the measure reflects a growing recognition of Bitcoin as “digital gold.” With the cryptocurrency’s market cap hovering near the required threshold, the bill could position West Virginia as one of the first states to formally integrate Bitcoin into its treasury strategy. Advocates say the move would protect taxpayer funds from erosion during periods of high inflation, while also signaling the state’s openness to emerging financial technologies.

Critics caution that Bitcoin’s price swings could expose public funds to risk. They point to the asset’s history of double‑digit monthly moves and question whether state treasuries should be exposed to such volatility. Still, the inclusion of gold provides a counterweight, and the $750 billion cap requirement is designed to filter out periods of instability.

For now, Senate Bill 143 sits in committee. If advanced, it could spark debate across statehouses nationwide about whether digital assets deserve a place alongside traditional reserves. West Virginia’s proposal marks another step in the ongoing conversation about Bitcoin’s role in institutional finance.