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Republican Senator Ben Keathley from Missouri has introduced a bill that would allow the treasury to invest budget funds in bitcoin and hold the acquired assets for a minimum of five years.
After this period, state authorities would have the option to transfer, sell, or convert the bitcoins into other digital assets. The legislation also includes a prohibition on transactions involving foreign states and companies outside of Missouri.
To fund the reserve, the proposal suggests permitting the acceptance of gifts, grants, and donations in digital assets from state residents and government entities. Additionally, government organizations would be able to accept cryptocurrencies approved by tax authorities for the payment of taxes, fees, fines, and other mandatory payments.
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The bill has been sent to the House Committee on Commerce, where public hearings and voting will take place. If approved, the document will return to the House for a final vote before being forwarded to the Senate.
Following approval by both chambers, the law will be sent to Governor Mike Kehoe for signing or veto. The date for the hearings has not yet been set. According to the Missouri House of Representatives, the law could come into effect on August 28.
In February of last year, Keathley proposed a similar initiative, but it did not advance past the committee stage.
Previously, investment firm VanEck suggested that the establishment of strategic bitcoin reserves at the state level in the U.S. could boost demand for BTC and attract up to $23 billion in additional capital.
In 2024, Missouri legislator Rick Brattin proposed banning the use of central bank digital currencies (CBDCs) for payments, expressing concerns about potential increases in government control.
