Missouri doubles down in proposing bitcoin adoption by introducing House Bill 1217.
The bill, sponsored by Rep. Ben Keathley, creates a Bitcoin Strategic Reserve Fund so the state can invest in and hold bitcoin as part of its portfolio. If passed, Missouri would join a growing number of US states exploring bitcoin to hedge against inflation and diversify their investments.
Julian Fahrer, co-founder and CEO of Apollo, a Bitcoin and Lightning services company, highlighted that this is the second bitcoin bill Missouri has introduced, and that there are key differences between this bill, and SB614—the previous one.
The House Bill 1217, filed on Feb 6, gives the Missouri state treasurer the authority to receive, invest in and manage bitcoin under certain conditions. The bitcoin reserve fund can grow through direct investments and donations from residents and government entities.
Unlike SB614, there is no cap for this investment. The previous bill outlined a 10% maximum cap on the amount of funds used to invest in bitcoin.
Another new part of this bill is the requirement for all government agencies in Missouri to accept digital assets for various payments including taxes, fees and fines. It’s worth noting that the responsibility for paying transaction fees falls on the individual making the payment.
A key new part of the bill is its long-term bitcoin holding strategy. The bill says:
“The treasurer shall store all Bitcoin collected under sub-section 2 of this section for a minimum of five years from the date that the Bitcoin enters the state’s custody.”
This shows Missouri is treating bitcoin as a long-term investment, not a short-term financial tool.
The bill looks at bitcoin as a hedge against inflation, and an asset that could grow significantly in 5 years, saying traditional fiat currencies are devalued over time.
If passed, House Bill 1217 goes into effect on Aug 28, 2025, but further discussions and amendments may change that timeline.
Missouri is not the only one considering bitcoin as part of its financial strategy.
Utah is already ahead with House Bill 230. Utah’s bill, sponsored by Rep. Jordan Teuscher, proposes up to 5% of certain public funds be allocated to bitcoin. As of Feb 7, Utah’s bill had already passed the House and was moving on to the Senate.
Elsewhere, 16+ states are considering bitcoin reserves. Arizona, Kentucky, New Hampshire, and South Dakota are included in that list.
While the bill is exciting, there are also some concerns. Bitcoin is volatile so the value of Missouri’s bitcoin could fluctuate wildly over time. Critics say that’s a risk, not stability.
Also the bill requires government agencies to accept bitcoin payments which will be a logistical challenge.
State systems will have to integrate new technology to process Bitcoin transactions efficiently and securely. Regulatory scrutiny at the state and federal levels will also be a factor in implementing the bill.
As of now, House Bill 1217 has had its first reading but no second hearing has been scheduled. Lawmakers will have to review and debate the bill before it moves forward.
