Montana Joins Race for Bitcoin Reserve

Montana has become the fourth U.S. state to advance legislation that would allow the creation of a state special revenue account for investments in precious metals and digital assets, including Bitcoin (BTC). The bill, House Bill 429, passed the House Business and Labor Committee by a vote of 12-8 and now moves to the full House for a vote. If approved, it will proceed to the Senate and then to the governor, with a potential enactment date of July 1, 2025.

Introduced by Representative Curtis Schomer, HB 429 aims to create an investment strategy for Montana's state funds by diversifying assets to hedge against inflation. The bill defines digital assets as virtual currencies, cryptocurrencies, and other digital assets offering economic or access rights. It permits investments in exchange-traded products, precious metals, and digital assets with a market capitalization of over $750 billion averaged over the previous calendar year, as well as stablecoins.

Montana joins other U.S. states, such as Utah, Oklahoma, and Arizona, in the race to establish a strategic Bitcoin reserve. As of February, at least 20 states have introduced similar legislation. In Utah, HB 230 has moved to the Senate Revenue and Taxation Committee, while in Arizona, SB 1373 has passed the Senate Finance Committee and is set for a full Senate vote.

The growing momentum behind state-level Bitcoin reserves reflects a broader belief in the value of digital assets. Industry figures, such as Changpeng Zhao (CZ), former CEO of Binance, have emphasized the inevitability of Bitcoin's role in the global economy. CZ remarked, "You can buy bitcoins after the US government is done buying, or before. There is no other choice, btw," highlighting the impossibility of avoiding the use of Bitcoin, much like the internet or money.