Virginia lawmakers are transferring ahead with a proposal that might place the Commonwealth amongst a rising variety of states exploring direct publicity to bitcoin and different digital belongings via public reserves.
Senate Invoice 557, patroned by Senator Reeves, would set up the Commonwealth Strategic Cryptocurrency Reserve Fund, a particular nonreverting fund housed within the state treasury and administered by the Virginia State Treasurer.
The measure superior this week after passing the Senate Normal Legal guidelines and Expertise Committee in a 13–2 vote.
Beneath the laws, Virginia can be licensed to speculate state-held funds straight into bitcoin or different qualifying cryptocurrencies, creating what supporters describe as a strategic reserve designed to modernize treasury administration and place the state for the way forward for bitcoin and digital finance.
The invoice lays out an in depth framework for a way the bitcoin reserve would function. All funds appropriated for the aim, together with any bitcoin or cryptocurrency bought or acquired, can be credited into the reserve.
Notably, the proposal additionally accounts for belongings which may be generated via blockchain occasions corresponding to forks or distributed via airdrops, guaranteeing the state retains possession of any by-product digital holdings.
Not like many state accounts, the reserve can be nonreverting, which means funds would stay within the reserve on the finish of every fiscal 12 months relatively than returning to the final fund.
SB557 consists of guardrails supposed to restrict speculative publicity. Any cryptocurrency bought utilizing reserve funds will need to have maintained a median market capitalization of at the least $500 billion over the earlier 24 months, a threshold that successfully limits eligibility primarily to bitcoin.
The Treasurer can be required to handle investments beneath a “prudent particular person” commonplace, balancing diversification and danger minimization. The invoice additionally permits using derivatives if the Treasurer determines they serve one of the best curiosity of the fund.
To handle safety considerations, the laws authorizes the Treasurer to contract with third-party entities, together with certified custodians that make use of safe applied sciences corresponding to chilly storage, in addition to regulated liquidity suppliers to facilitate purchases and asset administration.
The Treasurer may additionally fee unbiased audits via licensed public accountants.
As well as, SB557 would set up a five-member Strategic Cryptocurrency Reserve Advisory Committee, together with members with experience in digital asset investments, to offer steering on valuation strategies and funding coverage.
The invoice mandates transparency via biennial reporting. By December 31 of every even-numbered 12 months, the Treasurer would publish and submit a report detailing the quantity and estimated worth of bitcoin and different cryptocurrencies held, modifications over time, and administration actions taken.
U.S. States embracing bitcoin
The proposal comes amid rising curiosity from U.S. states and municipalities in incorporating digital belongings into public portfolios, reflecting broader traits in cryptocurrency adoption and monetary innovation.
South Dakota lately launched Home Invoice 1155, which might enable the state to speculate as much as 10% of public funds in Bitcoin.
Earlier this 12 months, Rhode Island lawmakers launched Senate Invoice S2021 to briefly exempt small Bitcoin transactions from state revenue and capital good points taxes, with a $5,000 month-to-month and $20,000 annual cap.
The invoice treats Bitcoin as a “digital, decentralized forex” and permits residents and Rhode Island–primarily based companies to self-certify eligibility whereas maintaining easy information.
The exemption would take impact January 1, 2027, and expire January 1, 2028, as a pilot program to scale back tax friction on on a regular basis Bitcoin use.
New Hampshire is one other state actively championing Bitcoin. In Might 2025, New Hampshire grew to become the primary U.S. state to permit its treasury to spend money on Bitcoin and different large-cap digital belongings, authorizing as much as 5% of sure public funds to be allotted into crypto beneath Home Invoice 302. BTC at present qualifies beneath the market-cap rule.
Virginia lawmakers are transferring ahead with a proposal that might place the Commonwealth amongst a rising variety of states exploring direct publicity to bitcoin and different digital belongings via public reserves.
Senate Invoice 557, patroned by Senator Reeves, would set up the Commonwealth Strategic Cryptocurrency Reserve Fund, a particular nonreverting fund housed within the state treasury and administered by the Virginia State Treasurer.
The measure superior this week after passing the Senate Normal Legal guidelines and Expertise Committee in a 13–2 vote.
Beneath the laws, Virginia can be licensed to speculate state-held funds straight into bitcoin or different qualifying cryptocurrencies, creating what supporters describe as a strategic reserve designed to modernize treasury administration and place the state for the way forward for bitcoin and digital finance.
The invoice lays out an in depth framework for a way the bitcoin reserve would function. All funds appropriated for the aim, together with any bitcoin or cryptocurrency bought or acquired, can be credited into the reserve.
Notably, the proposal additionally accounts for belongings which may be generated via blockchain occasions corresponding to forks or distributed via airdrops, guaranteeing the state retains possession of any by-product digital holdings.
Not like many state accounts, the reserve can be nonreverting, which means funds would stay within the reserve on the finish of every fiscal 12 months relatively than returning to the final fund.
SB557 consists of guardrails supposed to restrict speculative publicity. Any cryptocurrency bought utilizing reserve funds will need to have maintained a median market capitalization of at the least $500 billion over the earlier 24 months, a threshold that successfully limits eligibility primarily to bitcoin.
The Treasurer can be required to handle investments beneath a “prudent particular person” commonplace, balancing diversification and danger minimization. The invoice additionally permits using derivatives if the Treasurer determines they serve one of the best curiosity of the fund.
To handle safety considerations, the laws authorizes the Treasurer to contract with third-party entities, together with certified custodians that make use of safe applied sciences corresponding to chilly storage, in addition to regulated liquidity suppliers to facilitate purchases and asset administration.
The Treasurer may additionally fee unbiased audits via licensed public accountants.
As well as, SB557 would set up a five-member Strategic Cryptocurrency Reserve Advisory Committee, together with members with experience in digital asset investments, to offer steering on valuation strategies and funding coverage.
The invoice mandates transparency via biennial reporting. By December 31 of every even-numbered 12 months, the Treasurer would publish and submit a report detailing the quantity and estimated worth of bitcoin and different cryptocurrencies held, modifications over time, and administration actions taken.
U.S. States embracing bitcoin
The proposal comes amid rising curiosity from U.S. states and municipalities in incorporating digital belongings into public portfolios, reflecting broader traits in cryptocurrency adoption and monetary innovation.
South Dakota lately launched Home Invoice 1155, which might enable the state to speculate as much as 10% of public funds in Bitcoin.
Earlier this 12 months, Rhode Island lawmakers launched Senate Invoice S2021 to briefly exempt small Bitcoin transactions from state revenue and capital good points taxes, with a $5,000 month-to-month and $20,000 annual cap.
The invoice treats Bitcoin as a “digital, decentralized forex” and permits residents and Rhode Island–primarily based companies to self-certify eligibility whereas maintaining easy information.
The exemption would take impact January 1, 2027, and expire January 1, 2028, as a pilot program to scale back tax friction on on a regular basis Bitcoin use.
New Hampshire is one other state actively championing Bitcoin. In Might 2025, New Hampshire grew to become the primary U.S. state to permit its treasury to spend money on Bitcoin and different large-cap digital belongings, authorizing as much as 5% of sure public funds to be allotted into crypto beneath Home Invoice 302. BTC at present qualifies beneath the market-cap rule.
