Missouri Advances Bill to Establish State Bitcoin Strategic Reserve Fund

4 days ago

KEY FACTS: Missouri lawmakers have advanced House Bill 2080 (HB2080), a proposal to establish a Bitcoin Strategic Reserve Fund, by referring it to the House Commerce Committee on February 19, 2026, during the 103rd General Assembly's second regular session. Sponsored by Representative Ben Keathley (R-District 101) and introduced in January, the bill would create a dedicated fund in the state treasury, with the Missouri State Treasurer as custodian, to receive, hold, and manage Bitcoin primarily through voluntary gifts, grants, donations, bequests, or devises from Missouri residents or state governmental entities—no general taxpayer funds would be used for purchases. Key provisions include a mandatory five-year holding period in secure custody (emphasizing cold storage) before any transfer, sale, appropriation, or conversion to another cryptocurrency is allowed, along with requirements for robust security policies, potential third-party U.S.-based custodians, and strict bans on transactions involving foreign entities or illegal activities. The legislation also authorizes approved governmental entities to accept Department of Revenue-approved cryptocurrencies for payments of taxes, fees, fines, and other obligations. If it clears the Commerce Committee with a public hearing and vote, it would proceed to full House consideration, then the Senate, and ultimately to Governor Mike Kehoe, with a proposed effective date of August 28, 2026.

Source: Seal of Missouri State, Bill Document

Missouri Advances Bill to Establish State Bitcoin Strategic Reserve Fund

The Missouri House of Representatives advanced House Bill 2080 (HB2080), a revived proposal to create a "Bitcoin Strategic Reserve Fund," by referring it to the House Commerce Committee for further review and consideration. This is a significant step forward by the Missouri lawmakers toward pioneering cryptocurrency adoption in the state at the governmental level.

Introduced in January by Representative Ben Keathley (Republican, District 101) during the 103rd General Assembly's second regular session, HB2080 seeks to position Bitcoin as a long-term strategic asset within the state's financial framework. The bill, which builds on a similar but unsuccessful effort from the previous year, reflects growing interest among some U.S. states in incorporating Bitcoin into public treasuries amid its increasing recognition as a store of value.

HB2080 would establish the Bitcoin Strategic Reserve Fund in the state treasury, with the Missouri State Treasurer serving as its custodian. The fund would be dedicated exclusively to holding and managing Bitcoin contributions. The legislation authorizes the treasurer to:

Accept gifts, grants, donations, bequests, or devises of Bitcoin specifically from Missouri residents or governmental entities within the state. Importantly, the bill prohibits the use of general state funds to purchase Bitcoin outright, meaning the reserve would primarily build through voluntary contributions rather than direct taxpayer-funded acquisitions.
Invest, purchase, and hold cryptocurrency using state funds in certain circumstances, though the emphasis remains on donation-based accumulation for the reserve itself.
Store any received Bitcoin in secure custody for a mandatory minimum period of five years from the date it enters state possession. During this time, the assets must be held in secure methods, including cold storage, a technique that keeps private keys offline and isolated from networks to minimize risks of hacking or unauthorized access.
After the five-year holding period, the treasurer would gain flexibility to transfer, sell, appropriate, or convert the Bitcoin to another cryptocurrency, as deemed appropriate.

To safeguard the assets, the bill requires the treasurer to develop robust policies and protocols aligned with best practices in digital asset management. This includes potential contracts with qualified, independent, U.S.-based third-party cryptocurrency custodians for assistance in security and administration.

The legislation also imposes strict limitations, stating that the treasurer must prohibit any transactions involving foreign countries, entities, or individuals outside Missouri, as well as those linked to known illegal activities.

Additionally, HB2080 would enable governmental entities in Missouri to accept cryptocurrency, specifically types approved by the Department of Revenue, for payments of taxes, fees, costs, charges, assessments, fines, or other obligations owed to the state. Payers could be charged service fees related to such transactions.

On February 19, 2026, HB2080 was referred to the House Commerce Committee. There, it will undergo a public hearing, a committee vote, and potentially amendments or recommendations before advancing back to the full House for debate and a final vote.

If it passes the House, the bill would move to the Senate for a similar process: readings, committee review, floor debate, and a vote. Upon approval by both chambers, it would reach the desk of Governor Mike Kehoe for signature or veto. The proposed effective date for the measure, if enacted, is August 28, 2026. No public hearing date has been scheduled yet for the committee stage.

This is not Missouri's first attempt at such a policy. Representative Keathley previously introduced House Bill 1217 in February of the prior year, which proposed a similar Bitcoin strategic reserve. That measure advanced to a public hearing in a special committee but failed to receive a vote and was ultimately abandoned.

The revival of the idea in HB2080 comes amid broader momentum in the U.S. for state-level Bitcoin reserves. Industry analysts, including asset manager VanEck, have projected that widespread adoption of strategic Bitcoin reserves by American states could generate substantial demand, potentially exceeding $23 billion, for the cryptocurrency.

Missouri's proposal joins a growing list of states exploring Bitcoin as a hedge against inflation or a diversification tool for public finances, inspired in part by corporate treasuries and international examples. While the bill emphasizes secure, long-term holding and donation-driven growth rather than aggressive spending of public money, its advancement signals continued legislative interest in digital assets within conservative-leaning states.

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