U.S. States Accelerate Bitcoin Treasury Plans as West Virginia and Florida Move Ahead

U.S. states are pressing forward with Bitcoin-focused treasury strategies, even as federal crypto legislation remains stalled in Washington.

Over the past week, West Virginia and Florida have taken concrete legislative steps that underscore a growing state-level push to integrate Bitcoin and digital assets into public finance.

West Virginia Introduces the “Inflation Protection Act of 2026”

On January 16, 2026, West Virginia lawmakers formally introduced Senate Bill 143, known as the Inflation Protection Act of 2026. The proposal would authorize the state treasurer to allocate a portion of public funds into hard assets and digital stores of value.

Under the bill:

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  Up to 10% of public funds could be invested in Bitcoin, gold, and silver as explicit inflation hedges.
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  Eligible digital assets must have maintained an average market capitalization of at least $750 billion over the previous year, a condition that currently limits eligibility to Bitcoin alone.
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  The legislation requires secure custody, with the state retaining control of private keys. It also permits staking and lending, allowing the treasury to generate yield on digital asset holdings.

If passed, West Virginia would become one of the most aggressive U.S. states in formally embedding Bitcoin into its balance sheet.

Florida Advances Its Strategic Crypto Reserve Bill

Florida’s parallel effort gained momentum on January 15, 2026, as lawmakers updated the Florida Strategic Cryptocurrency Reserve bill (SB 1038). The proposal is part of the state’s broader ambition to position itself as a leading crypto hub in the U.S.

Key developments include:

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  Committee referral to both the Banking and Insurance Committee and the Appropriations Committee.
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  Creation of a Strategic Cryptocurrency Reserve Advisory Committee to advise the state’s Chief Financial Officer on portfolio management and risk controls.
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  Authorization for the CFO to fund crypto purchases using specific non-tax revenue sources, with an effective start date targeted for July 1, 2026.

Unlike West Virginia’s fixed allocation cap, Florida’s model is more discretionary, centered on reserve management rather than a percentage-based mandate.

States Move Ahead as Federal Action Stalls

As of January 16, 2026, federal crypto legislation, including the CLARITY Act, remains delayed in the U.S. Senate. In contrast, states are advancing independently, shaping their own approaches to digital asset adoption.

Recent state-level actions include:

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  West Virginia: Introduction of SB 143, allowing up to 10% of public funds in Bitcoin and precious metals.
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  Florida: Advancement of SB 1038, establishing a strategic crypto reserve framework.
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  New Hampshire: An active bill permitting the treasury to hold up to 5% of public funds in Bitcoin.
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  Wyoming: Full public launch of its state-issued stablecoin, the Frontier Stable Token (FRNT).

Wyoming’s FRNT Stablecoin Hits the Market

Wyoming marked a separate milestone on January 15, 2026, as its Frontier Stable Token (FRNT) completed its first full day of open public trading. The dollar-backed token is now available on the Solana blockchain via Kraken.

The structure directs interest earned on FRNT’s dollar reserves back to the state, creating a revenue stream for public use while offering residents a state-issued digital payment option.

A Clear State-Led Trend

Taken together, these moves highlight a clear pattern: while federal policy debates continue, U.S. states are actively experimenting with Bitcoin reserves, stablecoins, and crypto-backed treasury strategies.

If even a portion of these initiatives pass into law in 2026, state governments could emerge as some of the earliest public-sector adopters of Bitcoin in the United States.