Montana Lawmakers Reject Bitcoin Reserve Bill

Generated by AI AgentCoin World
Monday, Feb 24, 2025 10:26 am ET1min read
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Montana Lawmakers Reject Bitcoin Reserve Bill in 41-59 Vote

In a significant development, Montana lawmakers have rejected House Bill 429, which aimed to allow the state to hold Bitcoin (BTC) as a state asset. The bill was defeated in a 41-59 vote during the House floor session, following its advancement through the Business and Labor Committee with a 12-8 vote last week.

House Bill 429 also included provisions for investing in precious metals and stablecoins. Bitcoin was the only digital asset that met the $750 billion market cap requirement. Representative Curtis Schomer, a sponsor of the bill, described it as "a precious bill for the treasury state," emphasizing the need to diversify state reserves amid concerns over inflation and federal political shifts.

Schomer highlighted precious metals as a historical hedge against economic uncertainty and digital assets as a modern investment with long-term growth potential. He stressed that digital assets have the potential for exponential returns and that the bill would help drive the state's economic growth. However, the bill faced a largely partisan split, with many Republicans joining Democrats in opposition.

Fiscal conservatives were divided on Bitcoin-related legislation, with some arguing that using taxpayer money for Bitcoin investments is too risky and amounts to speculation. Proponents countered that calculated risks are necessary to grow state assets, particularly amid inflation. They described inflation as a greater threat to taxpayers and framed Bitcoin as a tool to preserve and potentially increase the value of state reserves over time.

An amendment attempt to fund the bill with American Rescue Plan Act (ARPA) interest instead of general funds was made, but lawmakers questioned the legality of such a move, further undermining support. With the rejection of HB 429, Montana joined Wyoming, North Dakota, Mississippi, and Pennsylvania, where similar Bitcoin-related legislation has failed. Meanwhile, 20 other states have active proposals under consideration.