A Curious Twist: US States Outpacing Feds in Digital Gold Rush 💰

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In a surprising turn of events, West Virginia Senator Chris Rose has proposed a groundbreaking bill, The Inflation Protection Act of 2025. This legislative gem permits the state’s treasury to dabble in digital assets or precious metals, adding a dash of modernity to their investment strategy.

The bill, submitted on the most romantic of days, February 14th, lays out provisions for the West Virginia Treasury to invest in any digital asset with a market cap over $750 billion, including stablecoins. Intriguingly, at the moment, only one digital asset fits this grandiose bill: Bitcoin (BTC).

As per the bill, the treasury can only allocate 10% of its total funds into digital assets and precious metals. Moreover, the state can keep these assets on-chain or through exchange-traded funds (ETFs).

Senator Rose’s bill is merely the tip of the iceberg in a whirlwind of legislative proposals at the state level. These aim to create Bitcoin or digital asset strategic reserves as a safeguard against currency inflation due to structural deficit spending.

Meanwhile, on January 23rd, former US President Donald Trump established a working group to examine the practicality of a digital asset reserve for the federal government. Since then, several US states have jumped on the bandwagon, introducing, advancing, or rewriting legislation to establish digital asset reserves.

For instance, a bill that permits the Utah state treasury to invest a portion of its assets into Bitcoin, high-value altcoins, and stablecoins passed in the Utah House of Representatives on February 6th. The bill is now in the Utah Senate, awaiting approval.

Kentucky recently joined the club of digital asset reserve bills, allowing up to 10% of state funds to be allocated to digital assets, including BTC.

And let’s not forget about Michigan, which joined the party on February 13th. Representatives Bryan Posthumus and Ron Robinson introduced legislation, notably without specific restrictions on the type of digital assets to be included in the reserve.

2025-02-15 00:14