Missouri advances bill letting state treasurer buy and hold Bitcoin as a strategic reserve
Missouri Representative Ben Keathley introduced House Bill 2080, now referred to the House Commerce Committee, which would authorize the state treasurer to purchase, accept (via gifts, grants or donations) and hold Bitcoin (BTC) using state funds and permitted contributions. The bill allows the treasurer to store Bitcoin for up to five years before transferring, selling or converting it, and bars transactions with foreign persons or entities outside Missouri. It also permits government entities to accept cryptocurrencies approved by the Department of Revenue for tax and fee payments. The legislation proposes an effective date of Aug. 28 and, if passed by the House, would move to the Senate and then to the governor. Supporters argue the measure could diversify treasury holdings, hedge inflation, attract blockchain businesses and increase public engagement; critics highlight Bitcoin’s volatility, custody and auditing challenges and valuation concerns. The bill raises fiscal, custody, accounting and regulatory questions that the House Commerce Committee will review. A similar proposal (House Bill 1217) failed to advance in 2025. Institutional estimates (e.g., VanEck) suggest state-level strategic Bitcoin reserves could create notable demand if widely adopted.
Bullish
The bill is likely bullish for BTC price expectations because it signals potential institutional demand from a U.S. state treasury. If enacted, Missouri would create a legally sanctioned buyer that can acquire Bitcoin with public funds and donations, which carries symbolic weight and could encourage other states to pursue similar strategic reserves. Short-term impact: modest upside or event-driven volatility as traders price in the likelihood of adoption, committee hearings, and legislative momentum; actual on-chain demand depends on execution, custody rules and transaction volume. Long-term impact: stronger bullish potential if multiple states adopt similar policies, creating recurring institutional demand and legitimizing Bitcoin as a non-correlated treasury asset. Counterweights that could mute the bullish effect include the bill’s transaction restrictions (no out-of-state/foreign counterparties), custody and auditing concerns, possible political opposition, and the fact that passage is not guaranteed—these factors may delay or limit direct buying. Overall, the news raises demand-side expectations for BTC but outcomes depend on legislative passage and implementation details.