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Missouri Legislator Suggests Establishing Bitcoin Reserve Fund to Broaden State Investment Portfolio
Missouri Consultant Ben Keathley has introduced a bill aimed at integrating Bitcoin (BTC) into the state’s financial strategy.
House Bill 1217 (HB 1217), submitted on February 6, suggests the establishment of a Bitcoin Strategic Reserve Fund as a safeguard against fiat currency inflation and a means to diversify Missouri’s investment portfolio.
If approved, the bill would empower the Missouri state treasurer to acquire, invest in, and hold Bitcoin under specific conditions.
Missouri’s Bitcoin Fund May Accept Donations from Government Entities
The fund may accept BTC donations from governmental bodies and citizens, expanding its funding sources beyond state allocations.
Additionally, the bill stipulates that all government entities in Missouri must accept cryptocurrency for authorized transactions, including taxes, fees, and fines.
However, individuals making these payments would be responsible for covering transaction fees.
Keathley’s proposal highlights a long-term approach to Bitcoin holdings. The bill mandates that all BTC collected by the state be retained for a minimum of five years before any liquidation can occur.
Today I filed HB 1217 which would authorize Missouri to hold and accept Bitcoin for state funds. It will help diversify our state’s portfolio while hedging against inflation. #moleg https://t.co/tokLpGlWMJ
— Rep. Ben Keathley (@benKeath) February 7, 2025
This strategy aligns with a broader trend among U.S. states investigating digital asset reserves as part of their financial planning.
HB 1217 also aims to enhance Missouri’s investment authority, allowing the state treasurer to purchase, invest in, and hold Bitcoin using state funds.
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The proposed legislation is set to take effect on August 28, pending further discussions. However, as of this writing, a second hearing had not yet been scheduled.
Utah One Step Closer to Becoming First US State with Bitcoin Reserve
Missouri’s initiative follows a similar effort in Utah, where House Bill 230 recently passed the state’s House of Representatives on February 6 and is now advancing to the Senate.
Utah’s bill, introduced by Representative Jordan Teuscher, would permit the state treasurer to allocate up to 5% of public funds into Bitcoin, stablecoins, and other high-cap digital assets.
According to data from bitcoinlaws.io, 17 U.S. states are currently discussing Bitcoin reserves, with Arizona, Kentucky, New Hampshire, North Dakota, Wyoming, and South Dakota among those considering similar legislation.
Utah remains the frontrunner, with its bill just two steps away from becoming law.
However, not all states have welcomed the concept.
North Dakota lawmakers recently rejected a proposal (HB1184) that would have permitted investment in cryptocurrency and precious metals, with the bill failing in a 32-57 vote on January 31.
In another positive development, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced inflows totaling nearly $5 billion in January, marking a strong start that could propel them toward $50 billion or more by the end of the year, according to Bitwise CIO Matt Hougan.
As reported, Hougan noted that spot Bitcoin ETFs absorbed $4.94 billion in January alone, an annualized rate of approximately $59 billion.
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