In a bold move signaling growing institutional interest in digital assets, Missouri has taken a significant step toward embracing Bitcoin (BTC) as a strategic financial instrument. House Bill 1217, introduced by Representative Ben Keathley, aims to establish a Bitcoin Strategic Reserve Fund—a dedicated pool for holding BTC as part of the state’s investment portfolio. This initiative not only seeks to diversify Missouri’s financial holdings but also positions the state at the forefront of cryptocurrency adoption among U.S. jurisdictions.
The proposed legislation reflects broader trends across America, where multiple states are exploring ways to hedge against inflation and strengthen fiscal resilience through Bitcoin. With growing momentum and bipartisan support, HB 1217 could set a precedent for how public funds engage with decentralized assets in the coming decade.
Establishing the Bitcoin Strategic Reserve Fund
At the core of HB 1217 is the creation of a Bitcoin Strategic Reserve Fund, which would be managed by the Missouri State Treasurer. The fund would be authorized to receive, invest in, and hold Bitcoin under specific regulatory conditions. If passed, this law would empower state financial authorities to allocate public capital toward BTC purchases—a move aligned with long-term wealth preservation strategies.
One unique aspect of the bill is its allowance for Bitcoin donations. Government agencies and even private citizens in Missouri could contribute BTC to the reserve through voluntary gifts or donations. This opens a pathway for community-driven participation in the state’s financial innovation while fostering public trust in emerging asset classes.
👉 Discover how governments are reshaping their investment strategies with digital assets.
Accepting Cryptocurrency for Government Payments
Beyond investment, HB 1217 mandates that all state government entities accept cryptocurrency payments for taxes, fees, fines, and other legally permitted transactions—provided they are approved by the Department of Revenue. While this promotes financial modernization, it also places responsibility on payers to cover associated transaction fees, ensuring no additional burden falls on state resources.
This payment integration aligns Missouri with forward-thinking fiscal policies seen in states like Texas and Florida, where digital currency use is being explored for public services. By embracing crypto-enabled transactions, Missouri signals readiness for a more agile, tech-integrated government infrastructure.
Long-Term Holding Strategy: A Five-Year Lockup Rule
A standout feature of the bill is its emphasis on long-term Bitcoin retention. According to the proposal:
“All Bitcoin received under this section shall be held by the treasurer for at least five years from the date it comes into custody of the state.”
This mandatory holding period discourages short-term speculation and reinforces Bitcoin’s role as a strategic reserve asset, not a volatile trading instrument. It mirrors corporate treasury models adopted by companies like MicroStrategy and Tesla, which have benefited from BTC’s appreciation over time.
Such a policy helps insulate public funds from market volatility while supporting confidence in digital assets as viable stores of value.
Authority to Invest State Funds in Bitcoin
HB 1217 grants explicit authority to the State Treasurer to use public funds to purchase and hold Bitcoin. This marks a pivotal shift in public finance, where traditional assets like bonds and equities may now share space with decentralized cryptocurrencies.
The bill does not specify a cap on investment size, leaving room for future regulations or budgetary guidelines. However, its open-ended structure allows flexibility based on economic conditions and market outlooks.
With an intended effective date of August 28—subject to legislative review—the bill is currently awaiting its second hearing. Its progress will be closely watched by policymakers, investors, and blockchain advocates nationwide.
National Trends: U.S. States Moving Toward Bitcoin Reserves
Missouri’s initiative is part of a larger wave of state-level Bitcoin legislation sweeping across the United States. As of early 2025, 17 out of 50 states have introduced or advanced bills related to Bitcoin reserves, according to data from bitcoinlaws.io.
Among them, Utah leads the pack with House Bill 230 already passed by the House and moving through Senate review. That bill allows up to 5% of certain public funds to be invested in “qualified digital assets,” including Bitcoin, high-market-cap cryptocurrencies, and stablecoins.
Other states following similar paths include:
- Arizona, where a Bitcoin reserve bill cleared the Senate
- New Hampshire and North Dakota, both advancing strategic reserve proposals
- Wyoming, a longstanding leader in crypto-friendly regulation
- Kentucky and South Dakota, exploring frameworks for digital asset adoption
This coordinated movement suggests a growing consensus: Bitcoin is no longer just a speculative asset—it's being considered a legitimate tool for sovereign wealth management.
👉 See how state treasurers are redefining financial sovereignty with Bitcoin.
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Frequently Asked Questions (FAQ)
What is Missouri’s HB 1217 about?
HB 1217 proposes the creation of a Bitcoin Strategic Reserve Fund, allowing Missouri to invest in and hold Bitcoin as part of its public treasury. It also requires state agencies to accept cryptocurrency payments and mandates a minimum five-year holding period for all acquired BTC.
Can individuals donate Bitcoin to the state under this bill?
Yes. The bill permits government entities and Missouri residents to donate Bitcoin to the reserve fund, enabling community involvement in the state’s digital asset strategy.
Will Missouri taxpayers be able to pay taxes in Bitcoin?
Yes, once implemented, taxpayers will be allowed to pay taxes, fees, fines, and other charges using approved cryptocurrencies. However, users must cover any transaction fees associated with these payments.
How does this compare to other states’ Bitcoin initiatives?
Missouri’s approach is similar to Utah’s HB 230 but includes stricter holding requirements. Unlike some proposals that limit exposure (e.g., 5% caps), Missouri’s bill doesn’t currently define investment limits, offering more flexibility.
Is there a timeline for when this law might take effect?
The proposed effective date is August 28, pending further legislative action. However, no second hearing has been scheduled yet, so the timeline remains uncertain.
Why are states investing in Bitcoin?
States are turning to Bitcoin as a hedge against inflation, a tool for portfolio diversification, and a way to modernize public finance. With fiat currencies facing devaluation pressures, BTC offers a scarce, decentralized alternative with long-term appreciation potential.
Final Outlook: A New Era of Public Finance
As more states recognize the strategic value of Bitcoin, Missouri’s HB 1217 stands as a critical milestone in the evolution of public financial policy. By combining investment authority, payment acceptance, and long-term holding rules, the bill offers a comprehensive framework for responsible crypto integration.
Whether HB 1217 becomes law or inspires future iterations, one thing is clear: the era of government Bitcoin adoption has begun.
👉 Stay ahead of regulatory shifts and explore how digital assets are transforming public finance.