Kentucky & Missouri Explore Bitcoin Reserves
More States Explore Bitcoin for Reserves
Kentucky and Missouri are the newest US states exploring the inclusion of Bitcoin in their state reserves, signaling a growing trend in government adoption of digital assets.
Key Developments
- Kentucky (KY HB376): Representative Theodore Joseph Roberts introduced a bill allowing the State Investment Commission to allocate up to 10% of excess state reserves into digital assets, with Bitcoin being the only current cryptocurrency meeting the $750 billion market cap requirement.
- Missouri (House Bill 1217): Representative Ben Keathley filed a bill authorizing the state to hold and accept Bitcoin for payments. This is Missouri's second Bitcoin-related bill.
The Kentucky bill includes provisions for state retirement funds to invest in Bitcoin exchange-traded products (ETPs) and mandates multi-party governance and regular audits for custodial security. Central Bank Digital Currencies (CBDCs) are explicitly excluded from accepted tax payment methods.
This follows similar proposals in Arizona, Alabama, Florida, Massachusetts, New Hampshire, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, and Wyoming.
Regulatory Uncertainty Remains
Anndy Lian, author and intergovernmental blockchain expert, notes the ongoing challenges of classifying Bitcoin within public reserves: "The SEC, the Fed, and even Congress will have to grapple with how to classify Bitcoin in public reserves — is it a commodity? A security? Something entirely new?"
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