FIRST REGULAR SESSION
SENATE BILL NO. 614
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR FITZWATER.
2430S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapters 30 and 67, RSMo, by adding thereto two new sections relating to digital assets.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapters 30 and 67, RSMo, are amended by adding 1
thereto two new sections, to be known as sections 30.960 and 2
67.2060, to read as follows:3
30.960. 1. As used in this section, the following 1
terms mean: 2
(1) "Digital asset", virtual currency, 3
cryptocurrencies, natively electronic assets, includi ng 4
stablecoins and nonfungible tokens, and other digital -only 5
assets that confer economic, proprietary, or access rights 6
or powers; 7
(2) "Qualified custodian", an entity that manages 8
digital assets and is: 9
(a) A federal or state-chartered bank; 10
(b) A trust company; 11
(c) A special purpose depository institution; or 12
(d) A company regulated by the state; 13
(3) "Qualifying digital asset", any of the following: 14
(a) A digital asset with a market capitalization of 15
over five hundred billion dollars averaged over the previous 16
twelve months; or 17
(b) A stablecoin; 18
(4) "Secure custody solution", a technological product 19
or blended product and service that: 20 SB 614 2
(a) Maintains cryptographic private keys that secure 21
digital assets exclusively known by and accessible by the 22
government entity; 23
(b) Contains cryptographic private keys exclusively 24
within an encrypted environment accessible only via end -to- 25
end encrypted channels; 26
(c) Does not allow cryptograp hic private keys to be 27
accessible by or controllable via a smartphone; 28
(d) Maintains hardware containing cryptographic 29
private keys in at least two geographically diversified 30
specially designated secure data centers; 31
(e) Enforces a multi-party governance structure for 32
authorizing transactions, user access controls, and logs all 33
user-initiated actions; 34
(f) Implements a disaster recovery protocol ensuring 35
customer access to assets if the provider becomes 36
unavailable; and 37
(g) Undergoes regular code audits and penetration 38
testing from audit firms with prompt remedy of identified 39
vulnerabilities; 40
(5) "Stablecoin", a digital asset that: 41
(a) Is issued by a corporation; 42
(b) Is backed by dollars or high -quality liquid assets; 43
(c) Is redeemable on demand by the holder at par for 44
United States dollars; and 45
(d) Has received appropriate regulatory approval from: 46
a. The United States of America; or 47
b. A state of the United States of America. 48
2. In addition to other authorized investments, the 49
state treasurer may invest a portion of public funds in 50
qualifying digital assets. The amount of public funds that 51
the state treasurer may invest may not, at the time the 52 SB 614 3
investment is made, exceed t en percent of the total amount 53
of public funds in that account. 54
3. The state treasurer shall hold digital assets 55
acquired under this section: 56
(1) Directly through the use of a secure custody 57
solution; 58
(2) Through a qualified custodian on behalf of the 59
state; or 60
(3) In the form of an exchange traded product issued 61
by a registered investment company. 62
4. The state treasurer may engage in staking of 63
qualifying digital assets if: 64
(1) The treasurer's office retains legal ownership of 65
the digital asset; and 66
(2) The staking is conducted using a third -party 67
solution. 68
5. The state treasurer may loan qualifying digital 69
assets if: 70
(1) The loan does not increase the financial risk to 71
the state; and 72
(2) The loan complies with rules established by the 73
treasurer. 74
67.2060. 1. This section shall be known and may be 1
cited as the "Blockchain Basics Act". 2
2. As used in this section, the following terms mean: 3
(1) "Blockchain", data that is: 4
(a) Shared across a network to create a ledger of 5
verified transactions or information among network 6
participants linked using cryptography to maintain the 7
integrity of the ledger and to execute other functions; and 8
(b) Distributed among network participants in an 9
automated fashion to concurrently update network 10 SB 614 4
participants on the state of the ledger and any other 11
functions; 12
(2) "Blockchain protocol", any executable software 13
deployed to a blockchain composed of source code that is 14
publicly available and accessible including, but not limited 15
to, a smart contract or any network of smart contracts; 16
(3) "Consumer Price Index", the Consumer Price Index 17
for All Urban Consumers (CPI -U) (1982-1984 = 100), not 18
seasonally adjusted, as defined and officially recorded by 19
the United States Department of Labor, or its successor 20
agency, from January first of the current year compared to 21
January first of the preceding year; 22
(4) "Digital asset", virtual currency, 23
cryptocurrencies, natively electronic assets including, but 24
not limited to, stablecoins and nonfungible tokens, and 25
other digital-only assets that confer economic, proprietary, 26
or access rights or powers; 27
(5) "Digital asset mining", using electricity to power 28
a computer or node for the purpose of securing a blockchain 29
network; 30
(6) "Digital asset mining business", a group of 31
computers working that consumes more than one megawatt of 32
electricity for the purpose of securing a blockchain 33
protocol; 34
(7) "Discriminatory rates", the charging of rates for 35
electricity that are substantially different from the rates 36
charged for other industrial uses of electricity in similar 37
geographic areas; 38
(8) "Home digital asset mining", digital asset mining 39
in an area zoned for residential use; 40
(9) "Node", a computational device that does any of 41
the following: 42 SB 614 5
(a) Communicates with other devices or participants on 43
a blockchain to maintain consensus and integrity of that 44
blockchain; 45
(b) Creates and validates transaction blocks; or 46
(c) Contains and updates a copy of a blockchain. 47
A node does not exercise discretion over transactions 48
initiated by the end user of the blockchain protocol; 49
(10) "Self-hosted wallet", a digita l interface used to 50
secure and transfer digital assets under which the owner of 51
the digital asset retains independent control over the 52
digital assets that are secured by such digital interface; 53
(11) "Staking", using a node to lock digital assets i n 54
order to operate the consensus mechanism of a blockchain 55
protocol. 56
3. The state shall not prohibit, restrict, or 57
otherwise impair the ability of an individual to: 58
(1) Use digital assets to purchase legal goods or 59
services; or 60
(2) Self-custody digital assets using a self -hosted 61
wallet or third-party wallet. 62
4. Digital assets used as a method of payment shall 63
not be subject to any additional tax, withholding, 64
assessment, or charge by the state or a political 65
subdivision that is based solely on the use of the digital 66
asset as the method of payment. 67
5. Digital assets used as a method of payment shall 68
not be subject to capital gains tax subject to a two -hundred- 69
dollar limit per transaction. The limitation amount shall 70
be adjusted for inflation on January first annually based on 71
the percentage increase in the Consumer Price Index. This 72
subsection shall not be construed to prohibit the state or a 73 SB 614 6
political subdivision from imposing or collecting a tax, 74
withholding, assessment, or charge that would otherwise be 75
offered if the transaction had taken place with United 76
States legal tender. 77
6. (1) Neither the state nor a political subdivision 78
thereof shall prohibit an individual from participating in 79
home digital asset mining as long as such individual 80
complies with all local noise ordinances. 81
(2) No political subdivision shall place any specific 82
limit on sound decibels generated from home digital asset 83
mining that is more restrictive than other limits se t for 84
sound pollution enforced by the political subdivision. 85
7. (1) Neither the state nor a political subdivision 86
thereof shall prohibit a digital asset mining business from 87
operating in any area zoned for industrial use provided they 88
comply with all current ordinances. 89
(2) No political subdivision shall place any specific 90
limit on sound decibels generated from a digital asset 91
mining business that is more restrictive than other general 92
limits set for sound pollution in areas zoned for in dustrial 93
use. 94
8. No political subdivision shall impose any 95
requirement on a digital asset mining business that is not 96
also a requirement for data centers in its jurisdiction. 97
9. No political subdivision shall change the zoning of 98
a digital asset mining business without satisfying proper 99
notice and comment requirements. A digital asset mining 100
business shall be able to appeal a change in zoning to a 101
court with proper jurisdiction. A judge shall find a 102
violation of this section and nullif y such a change in 103
zoning if the judge determines the change was done to 104
discriminate against a digital asset mining business. 105 SB 614 7
10. The public service commission may approve rates 106
reflective of cost to serve but shall not approve a rate 107
schedule for digital asset mining that creates 108
discriminatory rates for digital asset mining businesses. 109
11. Anyone engaged in home digital asset mining or a 110
digital asset mining business shall not be considered a 111
money transmitter under sections 361.700 to 361.727. 112
12. The state shall not prohibit an individual from: 113
(1) Operating a node for the purpose of connecting to 114
a blockchain protocol or a protocol built on top of a 115
blockchain protocol and transferring digital assets on a 116
blockchain protocol; or 117
(2) Participating in staking on a blockchain protocol. 118
13. An individual or business operating a node or a 119
series of nodes on a blockchain protocol shall not be 120
required to obtain a money transmitter license under 121
sections 361.700 to 361.727 to engage in such activity. 122
14. No business offering to provide digital asset 123
mining or staking services for individuals or to other 124
businesses shall be considered as offering a security or 125
investment contract under state law. 126
15. Notwithstanding any other provision of law to the 127
contrary, no individual or entity shall face liability 128
related to a specific transaction merely by validating such 129
transaction if such individual or entity: 130
(1) Engages in digital asset mining; 131
(2) Operates a node or series of nodes on a blockchain 132
network; or 133
(3) Provides digital asset mining or staking services 134
for individuals or other businesses. 135