Missouri Proposes Bitcoin Strategic Reserve Fund

Missouri Introduces Bitcoin Strategic Reserve Fund

Missouri Representative Ben Keathley has introduced House Bill 1217, proposing the creation of a Bitcoin Strategic Reserve Fund. This initiative aims to diversify the state's investment portfolio and hedge against inflation associated with fiat currencies. Filed on February 6, the bill would allow the Missouri treasurer to receive, invest, and hold Bitcoin under specific circumstances.

Key Provisions of the Bill

The proposed legislation outlines the establishment of a Bitcoin reserve managed by the state treasurer. The fund could receive Bitcoin through gifts and donations from government entities and Missouri residents. Additionally, the bill would require all state government entities to accept cryptocurrency for approved uses, such as taxes, fees, and fines, with transaction fees borne by the payers.

Long-Term Bitcoin Holding Strategy

Representative Keathley's bill includes a provision for a long-term Bitcoin holding strategy. The treasurer would be required to store all collected Bitcoin for a minimum of five years from the date it enters the state's custody. This approach reflects Missouri's intention to leverage Bitcoin as a long-term investment to enhance its financial strategy.

Broader Trend in Cryptocurrency Adoption

Missouri's proposal aligns with a growing trend among U.S. states exploring the integration of Bitcoin into their financial systems. For instance, Utah is advancing House Bill 230, which would allow its treasurer to invest up to 5% of certain public funds into qualifying digital assets. As of February 7, 16 states, including Arizona, Kentucky, and Wyoming, are considering similar proposals to establish Bitcoin strategic reserves.

Current Status and Future Outlook

The proposed effective date for House Bill 1217 is August 28, though further legislative discussions may lead to adjustments. As of now, a second hearing for the bill has not been scheduled. Missouri's initiative underscores the increasing interest in cryptocurrencies as a viable component of state-level financial planning.

This summary highlights Missouri's efforts to embrace Bitcoin as a strategic asset, signaling a potential shift in how states manage their finances in the digital age.