Missouri lawmakers are considering a new proposal that would allow the state to hold bitcoin, but only if people donate it. The plan, known as House Bill 2080 (HB 2080), has moved to the House Commerce Committee for review. Lawmakers there will decide if it should go to a full vote in the Missouri House of Representatives.

The main idea behind the bill is simple. Missouri would create a “Bitcoin Strategic Reserve Fund” inside the state treasury. However, the state would not use taxpayer money to buy bitcoin. Instead, the fund would grow only through voluntary donations from residents or other approved sources.

The bill clearly states that no public funds would be used to purchase bitcoin. This means the government would not directly enter the market as a buyer. Supporters say this approach avoids financial risk for taxpayers while still allowing the state to participate in digital assets.

If the bill becomes law, the state treasurer would manage the reserve. The treasurer would be responsible for safely storing the donated bitcoin, overseeing any investments, and preparing a public report every two years. The fund would be kept separate from Missouri’s other state funds.

The bill also allows the treasurer to accept “gifts, grants, donations, bequests, or devises” of bitcoin from eligible Missouri residents and potentially other entities.

One of the most important parts of the proposal is the five-year holding rule. Any bitcoin donated to the fund must stay there for at least five years. Lawmakers say this rule is meant to prevent short-term trading or speculation. After five years, the treasurer could decide whether to transfer, sell, or exchange the bitcoin.

Security is another major focus of the bill. Because bitcoin is stored digitally, it can be vulnerable to hacking if not protected properly. The proposal requires the use of cold storage, which keeps digital assets offline and away from internet threats. It also calls for strict digital security practices and possibly the use of a U.S.-based third-party company to help safeguard the assets.

The treasurer would also need to conduct regular audits. Every two years, a report would detail how much bitcoin the state holds, its estimated value in US dollars, any transactions made, and any security issues. This reporting requirement is designed to increase transparency and public trust.

In addition to creating the reserve, the bill includes another digital-asset-related provision.

Missouri government offices would be required to accept “approved cryptocurrencies“ for certain payments, such as taxes, fees, and fines. However, the bill expects the payer to cover transaction fees. Unlike other parts of the bill, this section speaks of “cryptocurrencies” and is not limited to Bitcoin.

The bill does not state whether these digital assets will be added to the reserve or exchanged for dollars immediately.

Supporters say the proposal positions Missouri as one of the early states exploring how digital assets could fit into public finance. If passed, the state would officially manage bitcoin as a state-held asset, although only through donations.

However, some analysts believe the bill would have little effect on bitcoin’s market price. Because the reserve depends entirely on donations, it does not create new demand.