Bitcoin is no longer just a Wall Street or Silicon Valley topic. Across the United States, state governments are slowly beginning to explore how Bitcoin could fit into public finances. Two new developments from West Virginia and Arizona show that this trend is taking shape.
West Virginia lawmakers have introduced Senate Bill 143, known as the ‘Inflation Protection Act’ of 2026. The bill would allow the state treasury to invest up to 10% of its funds in precious metals and select digital assets as a hedge against inflation.
Under the proposal, only digital assets with a market capitalization above $750 billion would qualify. At present, that requirement effectively limits eligibility to Bitcoin. The bill would also allow investments in approved stablecoins and physical assets like gold.
The legislation was introduced by State Senator Chris Rose and has been sent to the committee for review as of January 2026.
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On the same day, Arizona lawmakers pushed forward a separate but related effort. Senate Bill 1043, sponsored by State Senator Wendy Rogers, passed its second reading in the Arizona Senate.
If approved, the bill would allow state agencies to accept Bitcoin for taxes, fees, and fines. Any crypto received would be converted into U.S. dollars immediately, ensuring the state avoids holding price risk.
Arizona lawmakers also advanced SB1042, a companion bill that would permit up to 10% of certain public funds to be allocated to a strategic Bitcoin reserve. Both bills now head to the Senate Finance Committee, marking one of the strongest pro-Bitcoin pushes by any U.S. state this year.
(adsbygoogle = window.adsbygoogle || []).push({});Together, these developments show that U.S. states are no longer dismissing Bitcoin outright. Texas has already set a precedent by putting Bitcoin directly on its balance sheet through a $10 million treasury purchase, while New Hampshire has gone a step further by passing the first formal law allowing public funds to be allocated to Bitcoin.
At the same time, several other states, including Montana, South Dakota, North Dakota, Pennsylvania, and Utah, have seen similar efforts stall or fail due to political pushback and financial warnings.
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