Exciting news hit the headlines this week as West Virginia lawmakers proposed a groundbreaking move. They're considering allowing the state treasurer to invest a portion of public funds in bitcoin, precious metals, and regulated stablecoins. This bold step signifies a significant leap towards embracing digital assets in state-level financial operations.
Introducing the Inflation Protection Act of 2026
Diving Deeper into Senate Bill 143
Let's delve into the details of Senate Bill 143, championed by Sen. Chris Rose during the 2026 regular legislative session. This bill aims to establish a new section of state law known as the "Inflation Protection Act of 2026." If passed, this legislation would empower the Board of Treasury Investments to allocate a portion of funds, up to 10%, into gold, silver, platinum, and specific digital assets, all while adhering to existing investment guidelines.
Unlocking Opportunities for Digital Assets
The Criteria for Digital Asset Investments
One fascinating aspect of the bill is the potential for West Virginia to invest in digital assets that have maintained an average market capitalization exceeding $750 billion in the previous calendar year. Currently, this threshold restricts eligibility to bitcoin exclusively, even though the asset isn't explicitly named in the statute. The underlying goal of the bill is to empower the Treasurer to explore investments in gold, silver, and bitcoin.
Ensuring Secure Custody and Compliance
Upholding Stringent Custody Protocols
The proposed legislation doesn't overlook the critical aspect of safeguarding digital assets. It mandates detailed custody requirements, emphasizing secure storage through the West Virginia treasurer, qualified third-party custodians, or registered exchange-traded products. The bill outlines stringent standards for key control, access, audits, and disaster recovery to ensure asset protection.
Exploring Yield-Generating Strategies
Maximizing Returns Through Strategic Investments
Besides holding digital assets, the bill opens avenues for yield generation. Through third-party providers, West Virginia can stake digital assets while retaining legal ownership. Additionally, the treasurer can explore lending digital assets under strict guidelines to mitigate financial risks effectively.
As we witness a shift towards embracing Bitcoin and tangible assets as long-term value stores for public funds, this proposal signifies a broader trend among U.S. states.
West Virginia and Other States Embracing Bitcoin
A Glimpse into State Initiatives
West Virginia isn't alone in this journey. Several states have ventured into similar territories, allowing limited exposure to digital assets. Rhode Island, for example, reintroduced a bill to exempt small Bitcoin transactions from specific taxes, aiming to reduce friction for everyday Bitcoin use. This highlights a growing interest and acceptance of digital assets at the state level.
Exciting times lie ahead as West Virginia Senate Bill 143 progresses through the legislative process. Stay tuned for more updates on this groundbreaking development!
Frequently Asked Questions
How much should you have of gold in your portfolio
The amount you make will depend on the amount of capital you have. Start small with $5k-10k. Then as you grow, you could move into an office space and rent out desks, etc. This way, you don't have to worry about paying rent all at once. Rent is only paid per month.
It's also important to determine what type business you'll run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. You should also consider the expected income from each client when you do this type of thing.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. So you might only get paid once every 6 months or so.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k in gold and working my way up.
How much should I contribute to my Roth IRA account?
Roth IRAs can be used to save taxes on your retirement funds. The account cannot be withdrawn from until you are 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, you can't touch your principal (the initial amount that was deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. You will pay income taxes when you withdraw your earnings. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's further assume you earn $10,000 annually after contributing. The federal income tax on your earnings would amount to $3,500. You would have $6,500 less. The amount you can withdraw is limited to the original contribution.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types if Roth IRAs: Roth and Traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs don't allow you deduct contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal limit, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
How is gold taxed in Roth IRA?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
The rules that govern these accounts differ from one state to the next. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to wait until April 1. New York has a maximum age limit of 70 1/2. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
finance.yahoo.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
How To
3 Ways to Invest Gold for Retirement
It's important to understand how gold fits in with your retirement plan. There are many ways to invest in gold if you have a 401k account at work. You may also be interested in investing in gold beyond your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the rules for gold investing:
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, invest in cash. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. Physical gold coins are easier to sell than certificates. Physical gold coins are also free from storage fees.
- Diversify Your Portfolio. Never place all your eggs in the same basket. In other words, spread your wealth around by investing in different assets. This will reduce your risk and give you more flexibility in times of market volatility.
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By: Micah Zimmerman
Title: West Virginia Lawmakers Champion Bitcoin Investments Using State Funds
Sourced From: bitcoinmagazine.com/news/west-virginia-propose-bitcoin-investments
Published Date: Fri, 16 Jan 2026 14:42:55 +0000
