In early 2026, Missouri is once again making headlines with its cryptocurrency legislative efforts. House Bill 2080, introduced by Representative Ben Keathley, has been referred to the House Commerce Committee, where it awaits a public hearing and committee vote. The bill aims to create a "Bitcoin Strategic Reserve Fund" and authorizes the state treasurer to acquire, hold, and manage Bitcoin under defined statutory guidelines. This is Keathley's second attempt; his prior 2025 bill stalled in committee and never reached a floor vote. The new version features a revised committee placement and a more structured custody framework.
HB2080 adopts a prudent funding approach: the state treasurer is permitted to accept gifts, grants, donations, bequests, or devises of Bitcoin from Missouri residents and governmental entities. The bill also authorizes the treasurer to purchase and hold Bitcoin using state funds, but emphasizes voluntary contributions as the primary funding source. This design limits taxpayer exposure while allowing the state to build a reserve gradually. Bitcoin acquired for the reserve must be placed in cold storage—defined as an offline method of securing private keys in a protected physical environment—and held for a minimum of five years from the date it enters state custody. During this period, the assets cannot be sold, transferred, or converted. After five years, the treasurer may sell, transfer, appropriate, or convert the holdings into another cryptocurrency authorized under the bill. This long lock-up period underscores the strategic nature of the reserve, avoiding short-term speculation.
To establish a solid legal foundation, HB2080 codifies definitions of Bitcoin and cold storage. Bitcoin is defined as a decentralized digital asset operating on a peer-to-peer network without centralized control; cold storage is defined as an offline method of safeguarding private keys in a physically secure environment. The bill requires the treasurer to develop formal custody policies and authorizes the use of a qualified, independent, U.S.-based third-party entity to assist in securing and administering the reserve. Biennial public reporting is mandated to ensure transparency. Additionally, a separate provision allows Missouri state agencies, with approval from the Department of Revenue, to accept cryptocurrency for taxes, fees, penalties, and other state obligations, with transaction costs potentially borne by the payer.
The legislative path requires multiple steps: if the Commerce Committee advances the bill, it will go to the full House for debate and vote; if approved, it moves to the Senate for committee review, floor consideration, and final passage. The bill then proceeds to Governor Mike Kehoe for signature or veto. The proposed effective date is August 28, 2026.
Missouri Eliminates State Capital Gains Tax
Beyond the reserve bill, Missouri has already implemented a landmark tax reform. In 2025, House Bill 594 (HB594) cleared the Missouri House and was signed into law by Governor Mike Kehoe, taking effect on January 1, 2025. The measure eliminates Missouri's state capital gains tax by allowing residents to deduct 100% of federally reported capital gains from their state adjusted gross income. This means Missourians owe no state tax when selling or spending Bitcoin, stocks, real estate, or other capital assets. Missouri became the first state in the U.S. to fully repeal individual state income taxes on capital gains. The 100% deduction applies to both short- and long-term gains from assets such as stocks, real estate, and cryptocurrency, though it does not extend to distributions from retirement accounts. This policy significantly reduces the tax burden for cryptocurrency traders and investors in the state, further positioning Missouri as a crypto-friendly jurisdiction. Together, the proposed Bitcoin reserve fund and the existing capital gains tax repeal reflect Missouri's proactive approach to embracing digital assets while establishing a regulatory framework.