Montana Moves to Make Bitcoin a Reserve Asset

Montana's Bitcoin (BTC) Reserve Bill Advances to State House Floor Vote

Montana's House Bill 429, which proposes the use of Bitcoin (BTC) as a reserve asset, has cleared the committee stage and is now headed for a vote on the state's House of Representatives floor. The bill, as outlined in new documents, aims to create a state special revenue account for investment in precious metals and digital assets.

The bill defines digital assets as virtual currencies, cryptocurrencies, native electronic assets, including stablecoins and non-fungible tokens, and other digital-only assets that confer economic, proprietary, or access rights or powers. The state would be limited to investing in precious metals, crypto assets with a market cap of over $750 billion averaged over the previous calendar year, and stablecoins. Currently, Bitcoin is the only non-stablecoin crypto asset that meets the criteria.

The bill also stipulates that the state treasurer must transfer up to $50 million from the general fund to the investment account by July 15th, 2025. This move aligns with a broader trend of states exploring the potential of cryptocurrencies as reserve assets. Earlier this month, West Virginia Senator Chris Rose introduced a bill allowing the state to invest up to 10% of public funds into similar assets. Legislators in Texas, Utah, and Arizona are also considering comparable proposals.

At the time of writing, the flagship digital asset, Bitcoin, is trading at $96,264, marking a 1.96% decrease over the past 24 hours. As the bill progresses through the Montana legislature, it will be interesting to observe how the state's potential investment in Bitcoin may impact the broader cryptocurrency market.