Last week, lawmakers in Missouri moved forward with a renewed initiative to establish a Bitcoin strategic reserve, advancing it to the House Commerce Committee as part of the ongoing legislative process.

House Bill 2080 was referred to the committee for review on February 19, where it will proceed to a public hearing, committee voting, and may undergo revisions before coming back to the House for a final debate and vote.

Missouri Treasurer Authorized to Hold BTC for Five Years

In January, Representative Ben Keathley introduced House Bill 2080, which proposes enabling the state treasurer to “invest, purchase, and hold cryptocurrency using state funds,” according to the summary of the bill.

The treasurer can collect gifts, grants, and donations from residents or government bodies to help fund the Bitcoin reserve. It is further stipulated that the Bitcoin can be kept for a period of five years, after which it may be transferred, sold, or converted into another cryptocurrency, while transactions with foreign entities are strictly restricted.

The bill also includes provisions for allowing government entities to accept cryptocurrencies sanctioned by the Department of Revenue for tax payments and other obligations.

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According to speculation from asset management firm VanEck last year, establishing strategic Bitcoin reserves in U.S. states could lead to a demand exceeding $23 billion if implemented.

No date has yet been set for the public hearing, but the proposed effective date for the legislation is August 28, as noted by the Missouri House.

If House Bill 2080 makes it through the House, it will be passed to the Senate for review and vote. Upon completion, the bill would require the signature of Missouri Governor Mike Kehoe.

Previous Attempt to Pass Similar Bill

Keathley had previously introduced a similar proposal, House Bill 1217, in February of the prior year; however, it did not progress beyond the committee stage and was ultimately shelved. This earlier attempt was sent to the House Special Committee on Intergovernmental Affairs and held a public hearing in March, but it failed to secure a committee vote necessary to advance.