Emre Yumlu 
According to VanEck, US states with pending strategic reserve legislation could generate $23 billion in demand for Bitcoin.
West Virginia State Senator Chris Rose has introduced the Inflation Protection Act of 2025, which would allow the state’s treasury to invest a portion of its funds into digital assets or precious metals.
Submitted on February 14, the bill enables the West Virginia Treasury to invest in digital assets with a market capitalization exceeding $750 billion, including stablecoins.
At the time of writing, Bitcoin is the only digital asset that meets the market cap requirement outlined in the proposal.
Strategic Digital Asset Reserve and Investment Limits
According to the bill, the treasury can only invest 10% of its total funds into digital assets and precious metals. Additionally, the state may hold these assets on-chain or through exchange-traded funds (ETFs).
Senator Rose’s bill is the latest in a wave of legislative proposals at the state level seeking to create strategic reserves of digital assets as a hedge against currency inflation caused by structural budget deficits.
On January 23, U.S. President Donald Trump established a working group to assess the feasibility of a digital asset reserve for the U.S. federal government.
Since then, several U.S. states have introduced, developed, or rewritten legislation to establish digital asset reserves.
On February 6, Utah passed a bill in the Utah House of Representatives allowing the state treasury to invest in Bitcoin, high-value altcoins, and stablecoins.
The bill has advanced to the Utah Senate, where it must also pass a vote before being sent to the governor for final approval.
On February 6, Kentucky joined the growing list of U.S. states with digital asset reserve bills. The Kentucky bill allows up to 10% of state funds to be allocated to digital assets, including BTC.
Michigan became the latest state to introduce a strategic digital asset reserve proposal with legislation presented by Representatives Bryan Posthumus and Ron Robinson on February 13.
Unlike other bills, Michigan’s proposal does not include specific restrictions on the types of digital assets to be included in the reserve.
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