Montana Rejects Bitcoin Reserve Bill Amid Volatility Concerns

Montana's Bitcoin Reserve Bill Fails on Second Reading, Now Dead

The Montana House of Representatives voted down a bill on Saturday that sought to make Bitcoin a state reserve asset and allow investment in other digital and precious metals assets exceeding a $750 billion market capitalization. The bill, known as House Bill No. 429, was rejected in a 41-59 vote due to ongoing concerns about risks associated with Bitcoin, which is currently the only digital asset that meets the investment criteria written in the bill's text.

Critics raised concerns about the volatility of digital assets and the potential risks associated with investing public funds in speculative markets. During the second reading, Montana's lawmakers expressed mixed opinions on investing public funds in volatile digital assets. State Rep. Steven Kelly stressed that the proposed investments in precious metals and digital assets are "way too risky."

Rep. Bill Mercer also voiced opposition to this type of financial activity for the state, saying he didn't "come here to do that." Addressing risk concerns, Rep. Curtis Schomer, the bill sponsor, argued that not passing the bill would present actual risk. He also noted that sticking to traditional investments like bonds would risk the state's purchasing power.

In support of the bill, Rep. Lee Demming stated that it could maximize returns on taxpayer money, while Rep. Curtis Schomer, also the bill sponsor, argued that the state's surplus funds could be used more effectively. He saw the potential for generating returns that could lead to tax cuts and fiscal relief. Despite a strong push from its supporters, House Bill 429 was ultimately rejected by the Montana House of Representatives.

The outcome contrasts sharply with the bill's previous success in the state's business and labor committee, where it passed by a 12-8 vote along strict party lines, with all Republicans in favor and all Democrats opposed. The bill, titled the "Inflation Protection Act of 2025," was first introduced by Rep. C. Schomer and a bipartisan group of co-sponsors on Feb. 7.

Its purpose is to diversify the state's investment portfolio by authorizing the Board of Investments to allocate up to $50 million from the general fund to precious metals like gold, silver, and platinum, as well as digital assets such as cryptocurrencies and stablecoins. Now the bill failed to