Missouri is making headlines with the introduction of House Bill 1217, which aims to establish a Bitcoin Strategic Reserve Fund. This initiative, spearheaded by Representative Ben Keathley, seeks to diversify the state’s investment portfolio and mandate the acceptance of cryptocurrency for state payments.
Key Takeaways
- House Bill 1217: Introduced by Rep. Ben Keathley to create a Bitcoin reserve fund.
- Investment Diversification: Aims to hedge against fiat currency inflation.
- Crypto Acceptance: Mandates that all government entities accept cryptocurrency for various payments.
- Long-Term Strategy: Proposes a minimum five-year holding period for Bitcoin.
Overview of House Bill 1217
On February 6, 2023, Missouri Representative Ben Keathley filed House Bill 1217, proposing the establishment of a Bitcoin Strategic Reserve Fund. This fund would allow the Missouri treasurer to receive, invest, and hold Bitcoin under specific circumstances. The bill is designed to help the state diversify its investment portfolio and act as a hedge against inflation in fiat currencies.
Proposed Features of the Bitcoin Reserve Fund
The proposed Bitcoin Strategic Reserve Fund would include several key features:
- Oversight by State Treasurer: The fund would be managed by the Missouri state treasurer, who would oversee all Bitcoin transactions.
- Collection of Bitcoin: The fund would be able to accept Bitcoin through gifts and donations from both governmental entities and Missouri residents.
- Mandatory Crypto Acceptance: All government entities in Missouri would be required to accept cryptocurrency for payments, including taxes, fees, and fines, as approved by the Department of Revenue. However, payees would need to cover any transaction fees associated with these payments.
- Long-Term Holding Strategy: The bill proposes that all Bitcoin collected must be stored for a minimum of five years from the date it enters the state’s custody, promoting a long-term investment strategy.
Authority to Invest in Bitcoin
If passed, House Bill 1217 would grant the Missouri state treasurer the authority to invest, purchase, and hold Bitcoin using state funds. This move aligns with a growing trend among U.S. states exploring the potential of cryptocurrency as a viable investment option.
Context and Comparisons
Missouri’s initiative follows a similar proposal in Utah, where House Bill 230 has advanced through the House and is now heading to the Senate. Utah’s bill allows the state treasurer to allocate up to 5% of certain public funds to purchase qualifying digital assets, including Bitcoin and stablecoins.
As of early February 2023, discussions regarding Bitcoin strategic reserves are underway in 16 of the 50 U.S. states, indicating a significant shift towards cryptocurrency adoption at the state level. Other states considering similar legislation include Arizona, Kentucky, New Hampshire, North Dakota, Wyoming, and South Dakota.
Conclusion
The introduction of House Bill 1217 marks a significant step for Missouri in embracing cryptocurrency as part of its financial strategy. By establishing a Bitcoin reserve fund, the state aims to diversify its investments and adapt to the evolving financial landscape. As discussions continue, the outcome of this bill could set a precedent for other states looking to explore the benefits of digital assets.
