Montana Lawmakers Reject Bitcoin Reserve Proposal

Montana Lawmakers Reject Bitcoin Reserve Proposal

In a significant setback for Bitcoin advocates, Montana's House of Representatives has voted down a proposal to invest state funds in Bitcoin, stablecoins, and precious metals. House Bill No. 429, which aimed to create a special revenue account for such investments, failed to pass a second reading with a vote of 41-59.

The bill, introduced by Republican Representative Mark Noland, sought to allocate $50 million by mid-July 2025 for investment in digital assets and precious metals. It specified that digital assets must have a market capitalization exceeding $750 billion over the past year, effectively limiting options primarily to Bitcoin.

Opposition from Republican lawmakers proved decisive in the bill's failure. Concerns centered around the risk and unclear financial allocation associated with investing taxpayer money into Bitcoin. Representative Jane Gillette, a fiscal conservative, expressed discomfort with the bill's lack of clarity, stating, "I am not comfortable with this bill... I don’t think the bill clearly articulates enough what that money is going to be spent on."

Representative Steven Kelly echoed similar concerns, calling Bitcoin "way too risky" as an investment for public funds. Bill Mercer, another Republican lawmaker, was also firmly against the proposal, stating, "Taking the hard-earned money from workers across the state and speculating on it is not the right way to go."

Despite initial support from the House Business and Labor Committee, the bill failed to gain enough traction in the full House vote. The concerns over risk and accountability ultimately led to its rejection.

While this legislative effort failed, it's unlikely that Montana's exploration of Bitcoin as a reserve asset will end here. Other states are actively considering similar initiatives, and the conversation around digital assets as a strategic financial tool continues to gain traction. Dennis Porter, CEO of the Satoshi Action Fund, remains optimistic about the growing interest in Bitcoin reserves across the U.S.

For now, however, the message from Montana's lawmakers is clear: they're not ready to bet taxpayer money on Bitcoin just yet. The state's involvement in the broader Bitcoin conversation signals a shift in how states are approaching digital assets, and if market conditions stabilize and Bitcoin gains further institutional acceptance, the state could revisit the idea in the future.