Kentucky and Missouri are the latest states in the U.S. to propose laws for Bitcoin reserves . This trend shows that more state governments are interested in adopting digital assets.
In Kentucky, a bill called KY HB376 was introduced by State Representative Theodore Joseph Roberts on February 6. This bill would let the State Investment Commission invest up to 10% of excess state reserves into digital assets like Bitcoin. To qualify, a digital asset must have a market cap of over $750 billion, averaged over the past year. Currently, only Bitcoin meets this requirement, with a market cap of $1.9 trillion.
Anndy Lian, an author and blockchain expert, noted that major institutions like the SEC and Congress will need to decide how to classify Bitcoin. Is it a commodity, a security, or something entirely new?
Missouri is also taking steps in this direction. Representative Ben Keathley has filed House Bill 1217, which would allow the state to hold and accept Bitcoin for payments. This is Missouri’s second attempt at a Bitcoin reserve bill, following Senate Bill 614.
The Kentucky bill also allows state retirement funds to invest in exchange-traded products linked to digital assets. It includes rules for custody with multi-party governance and regular audits.
