Bitcoin's Montana Setback: Lawmakers Reject Crypto Reserve Bill

Montana lawmakers have rejected a bill that proposed making Bitcoin a state reserve asset. The bill, which passed a committee vote last week, aimed to create a state special revenue account for investment in precious metals and digital assets, including cryptocurrencies, stablecoins, and non-fungible tokens.

The bill also set a market cap criterion of over $750 billion averaged over the previous calendar year for the state to invest in crypto assets, a threshold that only Bitcoin currently meets. The bill was supported by 40 Republicans and one Democrat in the House of Representatives, but was ultimately rejected by 41 Democrats and 18 Republicans.

Montana is not the only state considering crypto reserve legislation this year. Earlier this month, West Virginia Senator Chris Rose introduced a bill that would allow the state to invest up to 10% of public funds into similar assets. Legislators in Texas, Utah, and Arizona are also exploring similar proposals.

At the time of the vote, Bitcoin was trading at $92,029, down nearly 4% in the past 24 hours. Despite the rejection of the bill, the cryptocurrency market continues to evolve, with increasing interest from both individual investors and institutional players.