"Two States Reject Bitcoin Reserve Bills Amid Market Downturn"

Two states, South Dakota and Montana, have recently rejected proposals to invest in Bitcoin as a reserve asset, while other states continue to consider similar options. The South Dakota House Commerce and Energy Committee voted 9-3 to defer House Bill 1202, effectively killing the legislation for the current session. The bill, introduced by State Representative Logan Manhart (R-S.D.), sought to permit the state to allocate up to 10% of its public funds into Bitcoin investments.

Manhart had promoted the bill as a "commonsense update" to the state’s investment strategy, arguing that Bitcoin’s fixed supply and decentralized nature make it a valuable asset. However, Matt Clark, South Dakota’s State Investment Officer, opposed the bill, citing concerns about Bitcoin’s volatility and lack of underlying value. Clark suggested that passing the bill now would only lead to more confusion rather than benefit the state’s financial portfolio.

Just days before South Dakota’s decision, Montana lawmakers rejected a similar Bitcoin reserve bill in a 41-59 vote. The Montana proposal, House Bill 429 introduced by Representative Curtis Schomer, had aimed to create a special revenue account allowing up to $50 million to be allocated for cryptocurrencies, stablecoins, and precious metals.

The primary concerns cited by lawmakers who opposed the bills included Bitcoin’s price volatility and the lack of clear federal regulations. The uncertainty surrounding cryptocurrency regulations at both state and federal levels also played a role in the bills’ rejection. With the legal landscape for Bitcoin reserves still evolving, lawmakers expressed caution about moving forward without clearer guidelines.

While South Dakota and Montana have put Bitcoin reserve plans on hold, the momentum for such initiatives continues in other states. According to the Bitcoin Reserve Tracker, approximately 18 state-level Bitcoin reserve proposals are still pending across the country. States including Florida, Arizona, Utah, Texas, and Missouri are pushing forward with their own bills, indicating ongoing interest in integrating digital assets into public investment strategies.

The rejection of the South Dakota bill coincided with a broader market downturn for cryptocurrencies. On Monday, Bitcoin fell 3.9%, dropping to $91,980 amid fresh trade concerns and a steep drop in technology stocks, contributing to a general risk-off atmosphere across global markets. The market context may have added to lawmakers’ concerns about Bitcoin’s stability as a potential investment for public funds