Montana Moves to Make Bitcoin a Reserve Asset

Montana's House Business and Labor Committee has passed a bill that could pave the way for Bitcoin and other cryptocurrencies to become reserve assets. The bill, House Bill No. 429, was approved in a 12-8 vote on Feb. 19, with all Republicans voting in favor and all Democrats opposed.

The fourth crypto reserve bill to reach the House at the state level in the US, the measure would create a special revenue account to invest in precious metals, stablecoins, and digital assets with an averaged market cap above $750 billion over the last calendar year. Currently, only Bitcoin (BTC) meets this requirement.

The bill will now head to Montana's House, a stage in the legislative process that only Utah, Arizona, and Oklahoma have reached when it comes to Bitcoin reserve-related bills. If passed, the bill would become effective on July 1, allowing the state treasurer to move up to $50 million to a special account used to invest in precious metals, digital assets, and stablecoins by July 15.

Montana's bill was amended to exclude the requirement that funds must be held by a qualified custodian or through an exchange-traded fund. This change could make it easier for the state to invest in cryptocurrencies.

Montana joins a growing list of US states exploring the possibility of adding Bitcoin to their reserve assets. Other states that have introduced similar bills include Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas.

Utah has made the most regulatory progress, being the only state to have a Bitcoin reserve bill passed through the House. Satoshi Action Fund CEO Dennis Porter recently tipped Utah to be the first US state to adopt a Bitcoin reserve, citing the state's shorter legislative window calendar and "political momentum."

Meanwhile, US Senator Cynthia Lummis is still trying to pass a Bitcoin reserve bill at the federal level. As the crypto industry continues to grow and gain acceptance, more states and lawmakers are considering the potential benefits of adding Bitcoin to their reserve assets.