Montana Joins Crypto Revolution: State Approves Bitcoin Reserve Bill

Montana has emerged as a leader in the growing trend of U.S. states exploring cryptocurrency-backed reserves, with the state's House Business and Labor Committee recently approving a bill allowing it to hold Bitcoin and other cryptocurrencies as reserve assets. House Bill No. 429 passed on February 19 in a 12-8 vote along party lines, with unanimous Republican support and Democratic opposition.

The bill positions Montana among the states exploring crypto-backed reserves, joining Utah, Arizona, and Oklahoma in crypto reserve legislation. If enacted, the bill creates a special revenue account for investments in precious metals, stablecoins, and high-market-cap digital assets. A key amendment removed the requirement for holdings to be managed by a qualified custodian or through an exchange-traded fund (ETF).

If the legislation passes, it will take effect on July 1, with the state treasurer able to allocate up to $50 million into the account by mid-July. This move broadens Montana's financial diversification strategy and signals a growing acceptance of cryptocurrencies in the U.S. financial landscape.

The movement toward state-backed Bitcoin Reserves is gaining traction across the U.S. Illinois, Kentucky, Maryland, and other states are proposing similar bills. Utah has made the most legislative progress and is considered a frontrunner in implementing a Bitcoin Reserve, given its efficient legislative process and favorable political climate.

Efforts at the federal level continue, with Senator Cynthia Lummis advocating for nationwide adoption. Market sentiment remains cautious, with Polymarket estimating only a 10% likelihood of Donald Trump establishing a BTC Reserve within his first hundred days. Despite this uncertainty, VanEck's Head of Research, Mathew Sigel, projects that if 20 state-led Bitcoin Reserve bills are approved, they could generate over $23 billion in demand for BTC, further solidifying Bitcoin's role in institutional finance.