A significant legislative effort is underway in Missouri with the introduction of House Bill 2080, aimed at establishing a “Bitcoin Strategic Reserve Fund” for the state. The bill, introduced by Representative Ben Keathley in January, is currently under consideration by the House Commerce Committee, where it is awaiting a public hearing and vote.
This proposed legislation marks a renewed attempt by Keathley to integrate cryptocurrency into the state’s financial management structure, following his previous efforts in 2025 that did not progress beyond committee discussions. The current iteration of the bill offers a more comprehensive custody framework and has been strategically placed in a different committee to enhance its chances for advancement.
Under HB 2080, the state treasurer would be empowered to acquire, manage, and hold Bitcoin according to specific statutory mandates. The bill provides avenues for the treasurer to accept various forms of Bitcoin contributions, including gifts and grants from Missouri residents and governmental bodies. While the bill allows for the purchase of Bitcoin using state funds, it emphasizes that voluntary contributions should primarily fund the reserve.
Essential to the bill is the stipulation that any Bitcoin acquired must be stored in cold storage—a method that secures assets offline and protects private keys within a secure physical environment. The legislation mandates that once the state acquires Bitcoin, it must be held for a minimum of five years, during which time the assets cannot be sold, transferred, or converted. After this five-year period, the treasurer gains flexibility in managing the holdings, including the option to convert to other authorized cryptocurrencies.
The proposal also establishes clear definitions within the statute, categorizing Bitcoin as a decentralized digital asset, which underscores its operation on a peer-to-peer network devoid of centralized authority. By embedding such definitions, lawmakers aim to create a solid legal foundation for effective custody and risk management.
To further ensure the secure management of the fund, the treasurer is required to develop formal custody protocols, utilizing a qualified, independent third-party entity based in the United States to assist with oversight and administration of the reserve. The bill additionally mandates regular public reporting and oversight processes to enhance transparency regarding the fund’s operations and holdings.
In a related move, a supplementary provision within the bill would permit Missouri state agencies to accept cryptocurrency payments for various state obligations, including taxes and fees, contingent upon approval from the Department of Revenue. It is noted that transaction costs may fall to the payer, complicating the financial landscape for potential cryptocurrency users in the state.
If the Commerce Committee approves HB 2080, it will advance to the full House for further debate and voting before potentially moving to the Senate. Upon passage, it would subsequently require the signature of Governor Mike Kehoe to become law, with a proposed effective date set for August 28, 2026.
The focus on cryptocurrency aligns with broader trends across the nation, especially following the implementation of Missouri House Bill 594 last year, which eliminated the state capital gains tax. This legislation allows residents to deduct 100% of federally reported capital gains from their state adjusted gross income, effectively exempting them from state taxes when selling or using Bitcoin, marking Missouri as a pioneer in this regard.
Residents are watching closely to see how this legislative effort unfolds and whether it will pave the way for broader cryptocurrency acceptance and integration within state financial systems.
