Missouri Proposes Bitcoin Reserve Fund to Hedge Against Inflation

• Missouri plans a Bitcoin reserve to hedge against inflation, requiring holdings for 5+ years and allowing BTC payments to the state.
• 17 U.S. states are exploring Bitcoin reserves, with Utah leading—crypto is gaining traction in state-level financial strategies.
• Missouri’s bill reflects a broader trend of institutional Bitcoin adoption, aligning with Trump’s past suggestion for a national BTC reserve.

Missouri is making a bold move toward cryptocurrency adoption. The Bitcoin Strategic Reserve Fund filed by Representative Ben Keathley was House Bill 1217. This proposal is to diversify the investment portfolio for the state and hedge against fiat currency inflation. The bill would provide that the Missouri State Treasurer shall invest in and hold Bitcoin using state funds. Further, it would require government entities to accept Bitcoin for taxes, fees, fines, and other approved payments.

Missouri’s Bitcoin Investment Plan

The Bitcoin Strategic Reserve Fund would be managed by the State Treasurer. It could also accept Bitcoin donations from residents and government entities. A unique aspect of the bill is its long-term holding requirement. The state must retain all acquired Bitcoin for at least five years. This signals a strategic approach toward Bitcoin accumulation rather than short-term speculation.

Moreover, all Missouri government entities would be required to accept Bitcoin for specific transactions. However, the bill stipulates that payees must cover transaction fees. This ensures that no extra costs on Bitcoin payments fall to the state. If approved, the bill will take effect from August 28, 2025, though further debates may alter this timeline.

Rising Interest in State-Level Bitcoin Reserves

Missouri is not alone in considering a Bitcoin reserve. A similar bill was introduced by Utah Representative Jordan Teuscher on Jan. 21, which has cleared the House on its way to the Senate. Utah would invest up to 5% of certain public funds into Bitcoin, high-cap cryptocurrencies, and stablecoins.

As of February 7, 17 U.S. states are actively discussing Bitcoin reserve initiatives. Utah leads in progress, while states like Arizona, Kentucky, New Hampshire, North Dakota, Wyoming, and South Dakota are also exploring similar measures. According to Bitcoin Laws, 25 states have introduced cryptocurrency-related legislation, demonstrating a growing trend toward digital asset integration.

A National Trend Toward Bitcoin Reserves

Donald Trump previously suggested establishing a national Bitcoin reserve. Consequently, several states are now pushing for similar initiatives at the state level. Missouri’s HB 1217 aligns with this movement, reflecting increasing institutional interest in Bitcoin.

If approved, the bill could set a precedent for other states considering Bitcoin reserves. Besides diversifying assets, it may establish Bitcoin as a mainstream financial instrument in state governance. As more states explore cryptocurrency adoption, the role of Bitcoin in government finance is likely to expand.