Key Highlights
- Missouri created a Bitcoin Strategic Reserve Fund to hold and manage Bitcoin for the state.
- The state treasurer will secure the Bitcoin, accept donations, invest it, and report on it every two years.
- Missouri government offices will accept approved cryptocurrencies for taxes, fees, and fines.
Missouri lawmakers have advanced House Bill No. 2080, a proposal to establish a Bitcoin Strategic Reserve Fund, to the State House Commerce Committee.
This bill was introduced by Representative Keathley during the 103rd General Assembly and proposes the creation of a state-run fund to hold, manage, and secure Bitcoin, the largest cryptocurrency in the market.
If enacted, the measure would give the state a new way to manage state finances and let residents participate in cryptocurrency. Under the bill, the state treasury will have the responsibility of overseeing and protecting the fund, which can receive Bitcoin donations from Missouri residents or other government entities.
Details of the bill
Under the proposal, the Bitcoin Strategic Reserve Fund would be kept separate from other state funds. Any remaining funds will not be reverted to the state’s general revenue funds. The treasurer can invest in Bitcoin like other state funds, and any return will stay in the fund.
In addition, the fund will hold Bitcoin for at least five years. After that, the state treasurer can transfer, sell, or exchange the Bitcoin for other digital currencies. To keep it safe, the treasurer will create a policy for safe storage, including cold storage and secure digital asset management practices. A third-party company based in the U.S. may be introduced to help with this.
Furthermore, the treasurer is also required to conduct a regular audit and prepare a biennial report detailing the total Bitcoin held. This includes the U.S. dollar value, transactions, security threats, and how much is eligible for transfer or conversion.
Using cryptocurrency for state payments
The bill also includes Section 30.1027, which allows the treasurer to buy, invest, and hold other cryptocurrencies with the state funds. Missouri government offices will have to accept approved cryptocurrency approved by the Department of Revenue for taxes, fees, fines, or other payments. However, service fees may apply for these transactions.
The bill also provides procedures for recognizing donors with certificates and public acknowledgment and sets rules to determine donor eligibility.
This bill makes Missouri one of the first states to officially manage Bitcoin as a state asset. The House Commerce Committee will now review the bill and decide whether it should move to a full vote in the House.
Also Read: Whales Dump While Small Holders Accumulate Bitcoin Since October
