With the enactment of the Constitutional Money act on August 28, 2025, Missouri has become the leader of the Sound Money movement and the friendliest Sound Money state in America. Missouri now combines its longstanding sales tax exemption with legal-tender recognition, state individual capital-gains relief, an electronic mechanism for satisfying public debts through precious-metals accounts, and specific protections against state confiscation.

House Bill 754 was signed by Governor Mike Kehoe on July 10, 2025, and became effective August 28, 2025. The legislation enacted the Constitutional Money Act as part of a broader financial-services bill. Unlike proposals that direct a state to issue its own currency, Missouri’s law recognizes specie and electronic representations of actual gold and silver held in private custodial accounts.

Missouri still does not operate a state precious metals depository or own physical bullion as part of its reserve assets. It also lacks some specific statutory language Citizens for Sound Money recommends which would require courts to enforce precious metals, but overall Missouri ranks as the #1 state in the union for precious metal ownership and use. Because the Missouri constitutional Money act can serve as a model for other states, let's take a look at it before we do the regular rankings:

408.010. Constitutional money act — electronic specie currency accepted as legal tender — rules — payment and compensation by, requirements — definitions. — 1. This section shall be known and may be cited as the "Constitutional Money Act".

  2. Electronic specie currency shall be accepted as legal tender for payment of all public debts hereafter contracted in the state of Missouri and specie legal tender and electronic specie currency may be accepted as payment for all private debts hereafter contracted in the state of Missouri, in the discretion of the receiving entity; provided, however, that no person shall have the right to pay, upon any one debt, dimes and half dimes to an amount exceeding ten dollars, or of twenty and twenty-five cent pieces exceeding twenty dollars. Upon receiving a request for payment to a public entity using electronic specie, the custody agent, or other entity responsible for transmitting the payment to the public entity shall transmit the funds in United States dollars.

  3. The director of the department of revenue shall promulgate rules on the methods of acceptance of electronic specie currency as payment for any debt, tax, fee, or obligation owed. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this subsection shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This subsection and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2025, shall be invalid and void.

  4. Except as expressly provided by contract, no person or entity shall be required to use specie legal tender or electronic specie currency in the payment of any debt and nothing in this section shall prohibit the use of federal reserve notes in the payment of any debt.

  5. Any entity doing business in this state may, if requested by an employee, pay compensation to such employee, in full or in part, in the dollar-equivalent specie legal tender either in physical or in electronic transfer form. Any entity choosing to compensate its employees in specie legal tender shall be responsible for verifying the weight and purity of any physical specie legal tender before compensating employees.

  6. Under no circumstance shall the state of Missouri or any department, agency, political subdivision, or instrumentality thereof:

  (1) Seize from any person any specie legal tender or electronic specie currency that is owned by such person, except as otherwise provided in section 513.607. Any person whose specie legal tender or electronic specie currency is seized in violation of this subdivision shall have a cause of action in a court of competent jurisdiction, with any successful such action resulting in the award of attorney's fees;

  (2) Enforce or attempt to enforce any federal acts, laws, executive orders, administrative orders, rules, regulations, statutes, or ordinances infringing on the right of a person to keep and use specie legal tender and electronic specie currency as provided in this section;

  (3) Restrict in any way the ability of a person or financial institution to acquire specie legal tender or electronic specie currency or use specie legal tender or electronic specie currency in transactions; or

  (4) Enact any law discriminating or favoring one means of legal tender in the course of a transaction over another means of legal tender.

  7. For purposes of this section, the following terms mean:

  (1) "Bullion", refined precious metal, limited to gold and silver only, in any shape or form, with uniform content and purity, including, but not limited to, coins, rounds, bars, ingots, and any other products, that are:

  (a) Stamped or imprinted with the weight and purity of the precious metal that it contains; and

  (b) Valued primarily based on its metal content and not on its form and function;

  (2) "Electronic specie currency", a representation of actual gold and silver, specie, and bullion held in an account, which may be transferred by electronic instruction. Such representation shall reflect the exact unit of physical specie or gold and silver bullion in the account in its fractional troy ounce measurement as provided in this section;

  (3) "Legal tender", a recognized medium of exchange for the payment of debts, public charges, taxes, or dues that is:

  (a) Authorized by the United States Congress pursuant to Article I, Section 8 of the United States Constitution; or

  (b) Authorized by Missouri law pursuant to Article I, Section 10 of the United States Constitution;

  (4) "Precious metal", gold or silver;

  (5) "Specie", bullion fabricated into products of uniform shape, size, design, content, weight, and purity that are suitable for or customarily used as currency, as a medium of exchange, or as the medium for purchase, sale, storage, transfer, or delivery of precious metals in retail or wholesale transactions;

  (6) "Specie legal tender", includes any of the following:

  (a) Specie coin issued by the federal government at any time; and

  (b) Any other specie, provided such specie does not contain any insignia, symbols, or other recognizable logos of the Nazi Party.

While there are a few eccentricities here, like that last clause about "nazis?" The act does many things very well. Let's take a look:

1. Are Purchases of Precious Metals Exempt from Sales Tax?

Yes

Missouri exempts purchases of bullion and investment coins from state and local sales and use taxes. The exemption covers gold, silver, platinum, and palladium bullion with a purity of at least 900 parts per thousand. It also covers qualifying numismatic coins and other forms of legal tender made from precious metals when their market value exceeds their face value. The exemption does not impose a minimum purchase threshold, allowing small savers and larger investors to receive equal tax treatment.

Are Sales of Precious Metals Exempt from Capital Gains Tax?

Yes, at the state individual level. Missouri allows individual taxpayers to subtract 100 percent of income reported as capital gains for federal income-tax purposes for tax years beginning on or after January 1, 2025.

The statute also specifically provides, beginning with the 2026 tax year, a subtraction for capital gains arising from the sale or exchange of specie as defined by the Constitutional Money Act. That definition covers qualifying gold and silver products customarily used as currency, a medium of exchange, or for precious-metals transactions.

Does the State Have Legal Tender Recognition for Gold and Silver?

Yes

Missouri’s Constitutional Money Act recognizes specie legal tender and electronic specie currency under state law. Specie legal tender includes federally issued specie coins and other qualifying specie. Electronic specie currency is defined as a representation of actual gold or silver, specie, or bullion held in an account and measured in fractional troy ounces. Electronic Specie is more commonly called an Asset-Backed Digital Currency or ABDC.

The law permits specie legal tender and ABDC transactions to be accepted for private debts at the discretion of the receiving party. Except where a contract expressly provides otherwise, no private person or business is required to use or accept it.

The law also requires electronic specie currency to be accepted for qualifying public debts. Although the statute includes an electronic instrument, it does not direct Missouri to issue its own independent currency. Instead, the electronic currency represents actual gold or silver held in an account. This distinction places the law closer to the constitutional recognition model than the state-currency-issuance model opposed by Citizens for Sound Money.

Does the State Maintain a State Precious Metals Depository or Hold State Funds in Gold or Silver?

No

Missouri does not operate a state precious metals depository or own any physical gold or silver as part of its reserve assets. This is one place where the law could be improved. The State Treasurer’s published investment holdings consist primarily of United States Treasury securities, agency securities, repurchase agreements, deposits, and similar financial assets. The reported portfolio does not include physical bullion.

Missouri therefore receives no SMS point in this category.

Does the State Have Any Mechanism to Accept Tax Payments in Precious Metals?

Yes

Missouri law requires the Department of Revenue to establish methods for accepting electronic specie currency for debts, taxes, fees, and other obligations owed to the state. Under the statute, a taxpayer may initiate payment through an electronic specie account representing actual gold or silver. The custody agent or payment provider then transmits the amount owed to the public entity will be denominated in United States dollar value at the time of transfer.

The Department of Revenue describes the law as allowing electronic specie currency to be used for public debts, provided that the payment received by the department is converted and transmitted in dollars. This is not direct delivery of physical bullion to the state, but it is an operative statutory mechanism connecting a precious-metals account to the payment of state obligations.

Missouri therefore receives one SMS point in this category.

Does State Law Include Any Anti-Confiscation Protections for Gold or Silver?

Yes

Missouri law prohibits the state, its agencies, political subdivisions, and instrumentalities from seizing privately owned specie legal tender or electronic specie currency, except under the state’s existing criminal-forfeiture law. A person whose property is seized in violation of the statute has a cause of action and may recover attorney’s fees in a successful case.

The law also prohibits Missouri authorities from enforcing federal measures that infringe upon the right to keep and use specie legal tender or electronic specie currency as provided by state law. It further prohibits the state from restricting the ability of a person or financial institution to acquire or use such assets.

Missouri therefore receives one SMS point in this category. Missouri is the only state that has this protection in law and this makes Missouri the best location for new depositories in the nation.

Does the State Have a Statute Enforcing Precious Metals Contracts Through Payment in Precious Metals Rather Than Dollars?

Yes, and no

Missouri law provides that no person is required to use specie legal tender or electronic specie currency except as expressly provided by contract. That "unless" is important here. It provides some protection for gold and silver contracts, but it doesn't go as far as we would like. This language supports the freedom of parties to contract for payment in precious metals. However, the statute does not expressly require courts to order delivery of the agreed weight or quantity of metal rather than award an equivalent dollar judgment because it also states that "nothing in this section shall prohibit the use of federal reserve notes in the payment of any debt." a judgment on a contract denominated in Sound Money could therefore be considered a debt and paid in dollars if a court so ordered. However, the law still states that specie contracts are enforceable, so Missouri's law gets a point for this in spite of not having the strongest possible language.

Use of Gold and Silver in Commerce:

Missouri has a favorable environment for private bullion ownership and exchange. The sales tax exemption applies without a minimum transaction threshold, allowing ordinary citizens to acquire small amounts of precious metals without being penalized relative to wealthier purchasers.

The Constitutional Money Act permits businesses and individuals to use qualifying specie and electronic specie currency voluntarily. Employers may also compensate employees, at an employee’s request, partly or entirely in the dollar-equivalent value of specie legal tender.

The electronic specie provisions can support practical transactions without requiring the state to mint or issue a new monetary unit. The electronic balance must represent actual gold or silver held in a depository and must reflect the precise fractional troy-ounce interest represented.

The law’s public-payment mechanism remains somewhat indirect because the state ultimately receives dollars from the custody agent. Nevertheless, it creates a statutory bridge between privately held precious metals and payments owed to the government.

Overall Assessment

Strengths

Sales tax exemption for bullion and investment coins without a minimum purchase threshold.
State individual capital-gains exemption that includes qualifying gold and silver specie.
Legal-tender recognition for specie and electronic representations of actual precious metals.
Voluntary acceptance for private transactions.
Mechanism for satisfying taxes and other public debts through electronic specie accounts.
Specific anti-confiscation protections with a private cause of action and attorney’s fees.
Protection against state restrictions on acquiring and using qualifying specie.

Remaining Weaknesses

No state precious metals depository.
No state ownership of physical gold or silver reserves.
Public entities ultimately receive dollars rather than physical metal or a continuing bullion interest.
No statute expressly requiring courts to enforce precious-metals contracts through delivery of the agreed metal.
The broad definition of qualifying non-federal specie should be monitored to ensure that legal-tender recognition remains constitutionally grounded and does not evolve into state issuance of a separate currency.

Legislative Opportunities

Missouri could improve its Sound Money Score by:

*Authorizing a prudent and independently audited allocation of state reserve assets to allocated physical gold and silver.
*Using qualified private depositories rather than creating an unnecessary state monopoly over bullion custody.
*Adopting a statute requiring courts to enforce voluntary precious-metals contracts according to the agreed weight, purity, and quantity of metal.
*Clarifying administrative procedures for electronic specie tax payments so that taxpayers can readily identify participating custody agents and payment providers.
*Ensuring that electronic specie accounts remain fully backed by specifically identifiable physical gold or silver, subject to regular independent audits and clear redemption rights.

Missouri should preserve the distinction between recognizing gold and silver and issuing a new state currency. Future amendments should strengthen private ownership, custody, redemption, and contractual freedom without authorizing the state to manufacture an independent monetary instrument.

Summary

Missouri earns 6 points under the Sound Money Score.

The state exempts bullion and investment coins from sales tax, exempts capital gains at the state individual level, recognizes specie and electronic specie currency as legal tender, provides a mechanism for satisfying public obligations through precious-metals accounts, and protects qualifying specie from state confiscation. It also contains a contract provision.

Missouri does not operate a state precious metals depository or hold physical bullion reserves. It also lacks a specific statute requiring courts to enforce precious-metals contracts through payment in the agreed metal.

House Bill 754, effective August 28, 2025, moved Missouri substantially forward and provides a generally sound framework based on recognition of specie and account-based representations of actual gold and silver rather than direct issuance of a new state currency.

Missouri Sound Money Score: 6 of 7