A Virginia state senator has introduced legislation to establish a cryptocurrency reserve fund, positioning the Commonwealth among a growing number of states exploring digital assets as part of their financial strategy.
Senate Bill 557, introduced by Republican Senator Bryce Reeves on January 14, would create the Commonwealth Strategic Cryptocurrency Reserve Fund. The measure allows Virginia's State Treasurer to invest public funds in Bitcoin and other major cryptocurrencies with market capitalizations exceeding $500 billion, averaged over a 24-month period.
The bill establishes strict security requirements, mandating that cryptocurrency holdings be stored using "cold storage" methods—secure physical locations isolated from internet connections to prevent hacking. The State Treasurer would be authorized to contract with qualified custodians and liquidity providers to manage the fund's assets.
Under the proposal, any cryptocurrency purchased, along with assets derived from blockchain forks or airdrops, would remain in the dedicated fund rather than reverting to Virginia's general fund at fiscal year-end. A five-member advisory committee, including cryptocurrency investment experts, would provide guidance on fund management and valuation.
The legislation requires biennial reports to the General Assembly detailing the fund's holdings, estimated monetary value, and changes in cryptocurrency assets.
Virginia's proposal joins similar initiatives across the country. Texas, New Hampshire, and Arizona have already enacted laws permitting state-level cryptocurrency reserves, while West Virginia recently introduced comparable legislation. At the federal level, President Trump's 2025 executive order established a national Strategic Bitcoin Reserve, lending momentum to state efforts.
The bill has been referred to the Senate Committee on General Laws and Technology for consideration. If passed, Virginia would become one of the first East Coast states to formally integrate cryptocurrency into its treasury management strategy, reflecting growing institutional acceptance of digital assets as legitimate reserve holdings.