MO SB1177

Establishes legal definitions and classifications for digital assets in Missouri, categorizing them as digital consumer assets, digital securities, or virtual currency, each treated as intangible personal property under the Uniform Commercial Code

Authorizes Missouri banks and supervised trust companies to provide custodial services for digital assets after providing 60 days written notice to the commissioner, with requirements for IT best practices, anti-money laundering compliance, and independent audits

Creates a digital asset registration system through the Secretary of State, where Missouri residents and businesses can register digital assets for 5-year terms with fees up to $500, establishing the assets as legally located within Missouri

Allows security interests in virtual currency and digital securities to be perfected through possession or control (including via private keys, multi-signature arrangements, or smart contracts) rather than requiring traditional financing statement filings

Prohibits banks from rehypothecating custodied digital assets and requires written customer agreements specifying custody type (bailment or transactional), source code versions, and asset return timeframes