Montana Lawmakers Reject Bitcoin Reserve Bill

Montana lawmakers have dealt a setback to the Bitcoin Reserve initiative, voting down House Bill 429 in a 41-59 decision. The bill aimed to create a special revenue account for investing in precious metals, stablecoins, and high-market-cap digital assets, with Bitcoin being the sole asset meeting the bill's strict $750 billion market cap requirement.

State Representative Steven Kelly, speaking at the House Floor Session on February 22, expressed concerns about the riskiness of such investments, stating, "It's still taxpayer money, and we're responsible for it, and we need to protect it. These types of investments are way too risky." An amendment proposing to fund the bill using interest earned from the American Rescue Plan Act failed to gain enough support, with 18 Republicans joining the unanimous resistance from Democrats to oppose the measure.

While some lawmakers recognized the potential of House Bill No. 429, calls for further amendments weren't enough to secure its passage. Representative Lee Demming argued that the state had a responsibility to maximize returns on taxpayer funds, stating, "If we're going to keep the taxpayer's money, I think we owe it to the taxpayers to get as high a return on that money that's sitting in there, either that or you give it right back to them, so I'm going to vote on this bill for that reason." However, concerns about granting Montana's Board of Investments the authority to invest in cryptocurrencies and NFTs led to the bill's ultimate rejection.

Montana's recent move contradicts the approach of other states, with 24 states across the U.S. pursuing similar legislation. While 20 bills remain active in states like Arizona, Texas, and Ohio, Montana now joins Wyoming, North Dakota, and Pennsylvania as one of the few states to reject such proposals. Other states, including Utah and Arizona, continue to push their bills forward for Senate debate.