Missouri Bill Proposes Bitcoin Reserve Fund for State Investments

Missouri Representative Ben Keathley has introduced a new bill, House Bill 1217, which seeks to establish a Bitcoin Strategic Reserve Fund for the state. The bill aims to diversify Missouri’s investment portfolio by including Bitcoin (BTC) as a hedge against inflation and fiat currency fluctuations.

Bitcoin Reserve Fund Proposal

On February 6, Representative Keathley filed HB 1217, which would allow the Missouri State Treasurer to invest in and hold Bitcoin under specific circumstances. If signed into law, the bill would give the state the authority to collect Bitcoin through gifts and donations from Missouri residents or governmental entities, further strengthening the state’s strategic reserve.

Under the bill, the Bitcoin fund would be managed by the Missouri State Treasurer, and it would also require that state government entities accept cryptocurrency for certain transactions, including taxes, fees, fines, and other eligible payments. However, individuals making payments via cryptocurrency would be responsible for covering any associated transaction fees.

The proposal is part of a broader effort to position Bitcoin as a viable alternative asset class for the state, particularly as a tool for diversification in Missouri’s investment strategies. Keathley believes this could help insulate the state from the risks of inflation in traditional fiat currencies.

A Growing Trend Among U.S. States

Missouri’s move comes on the heels of similar efforts in other U.S. states. Utah, for example, introduced House Bill 230 on January 21, which would authorize the state’s treasurer to allocate up to 5% of certain public funds into "qualifying digital assets," such as Bitcoin, other high-cap cryptocurrencies, and stablecoins. The bill passed through Utah’s House on February 6 and is now moving to the Senate for further consideration.

As of February 7, 17 U.S. states have begun discussions about creating Bitcoin strategic reserves, with Utah leading the way. The state is just two steps away from enacting its legislation. Other states actively considering similar measures include Arizona, Kentucky, New Hampshire, North Dakota, Wyoming, and South Dakota, among others.

The Rise of Bitcoin as a Strategic Asset

The idea of integrating Bitcoin into state financial strategies is part of a growing trend to embrace cryptocurrencies as an alternative to traditional investments. Bitcoin, often considered a store of value, has become increasingly popular among institutional investors and governments looking for ways to hedge against the volatility of fiat currencies.

By introducing HB 1217, Missouri is positioning itself among a group of states that are exploring how Bitcoin can be integrated into their financial systems and used to safeguard against economic uncertainty.

Looking Ahead

The proposed Bitcoin Strategic Reserve Fund is one of the first of its kind in Missouri and reflects the broader momentum towards integrating digital assets into public financial strategies. If passed, the bill could set a precedent for other states to follow suit, expanding the role of cryptocurrency in state-level finance and investment.

As states like Utah continue to advance similar proposals, the increasing acceptance of Bitcoin and other digital assets at the state level marks a significant shift in how governments are approaching the future of money and investment.