Virginia Advances Bill in Committee to Establish State Bitcoin Fund

Virginia's Senate Bill 557, patroned by Senator Reeves, has advanced out of the Senate General Laws and Technology Committee with a 13-2 vote. The bill proposes establishing the Commonwealth Strategic Cryptocurrency Reserve Fund, a nonreverting fund in the state treasury, allowing Virginia to directly invest state funds into bitcoin or other qualifying cryptocurrencies as a strategic reserve.

The legislation sets specific guardrails, requiring any purchased cryptocurrency to have maintained an average market capitalization of at least $500 billion over the preceding 24 months, effectively limiting eligibility primarily to Bitcoin. The State Treasurer would manage investments under a "prudent person" standard, with provisions for using derivatives if deemed in the fund's best interest. Security measures include authorizing contracts with third-party custodians using cold storage and requiring independent audits.

Furthermore, the bill establishes a five-member Strategic Cryptocurrency Reserve Advisory Committee for guidance and mandates biennial public reporting on the reserve's holdings and management actions. This move aligns Virginia with other U.S. states, such as New Hampshire, South Dakota, and Rhode Island, which are also exploring digital asset integration or tax incentives related to cryptocurrency.

(Source：Bitcoin Magazine)