Montana Rejects Bitcoin Investment Bill

Montana's Bitcoin Reserve Bill Fails to Clear House of Representatives

In a significant setback for cryptocurrency advocates, Montana's House of Representatives has voted down a bill that sought to allow the state to invest in Bitcoin, precious metals, and stablecoins. The legislation, House Bill 429, was defeated in a 41-59 vote, with lawmakers expressing concerns over the risks associated with using taxpayer money for such investments.

The bill, which passed the Montana Business and Labor Committee on Feb. 19 with a 12-8 vote, aimed to diversify the state's investment portfolio. An amendment to fund the bill using interest earned from the American Rescue Plan Act was also proposed but failed to sway the majority.

While most Republicans backed the bill, with 40 voting in favor, 18 opposed it. The opposition was primarily driven by Democrats, who unanimously voted against the measure. Supporters of the bill argued that it would help the state generate better returns on taxpayer money. Representative Lee Demming, for instance, stated that if the state was going to hold onto taxpayer money, it had an obligation to ensure the highest possible return on investment.

However, opponents of the bill, such as State Representative Steven Kelly, argued that the bill posed too much risk for taxpayers. Kelly pointed out that lawmakers were responsible for protecting public funds and that investments in volatile assets like cryptocurrencies were "way too risky" for state money. Another opposer described the bill as a "foolhardy way to think about taxpayer dollars."

Montana joins Wyoming, North Dakota, and Pennsylvania as the only four U.S. states that have rejected similar bills, according to data from Bitcoin Reserve Monitor. As of Feb. 24, 19 other states are reviewing crypto reserve legislation, with Utah and Arizona leading, both having advanced their bills to their respective Senate floors for further debate.