"Senate Bill 557, patroned by Senator Reeves, would establish the Commonwealth Strategic Cryptocurrency Reserve Fund, a special nonreverting fund housed in the state treasury and administered by the Virginia State Treasurer. The measure advanced this week after passing the Senate General Laws and Technology Committee in a 13-2 vote. Under the legislation, Virginia would be authorized to invest state-held funds directly into bitcoin or other qualifying cryptocurrencies, creating what supporters describe as a strategic reserve designed to modernize treasury management."
"The bill lays out a detailed framework for how the bitcoin reserve would operate. All funds appropriated for the purpose, along with any bitcoin or cryptocurrency purchased or received, would be credited into the reserve. Notably, the proposal also accounts for assets that may be generated through blockchain events such as forks or distributed through airdrops, ensuring the state retains ownership of any derivative digital holdings."
"Unlike many state accounts, the reserve would be nonreverting, meaning funds would remain in the reserve at the end of each fiscal year rather than returning to the general fund. SB557 includes guardrails intended to limit speculative exposure. Any cryptocurrency purchased using reserve funds must have maintained an average market capitalization of at least $500 billion over the previous 24 months, a threshold that effectively limits eligibility primarily to bitcoin."
Senate Bill 557 would establish the Commonwealth Strategic Cryptocurrency Reserve Fund, a special nonreverting fund in the Virginia state treasury administered by the State Treasurer. The measure advanced after a 13-2 vote in the Senate General Laws and Technology Committee. The reserve would allow direct investment of state-held funds into bitcoin and qualifying cryptocurrencies, with appropriated funds and any purchased or received crypto credited to the reserve. The proposal retains ownership of assets from blockchain events such as forks or airdrops. The reserve would be nonreverting. Purchases must meet a $500 billion average market-cap threshold over 24 months, and the Treasurer must manage investments under a prudent-person standard with limited speculative exposure.
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