Bitcoin Reserve Bill Defeated in Montana

Montana's legislature rejected House Bill 429, seeking to authorize state investment in Bitcoin, stablecoins, and precious metals.

Montana lawmakers have rejected a bill that would have authorized the state to invest in Bitcoin, stablecoins, and precious metals.

The bill, House Bill 429, was voted down 41-59 on Monday.

Lawmakers who opposed the bill said they were concerned about the potential risks of using taxpayers’ funds to make investments in risky assets.

"We have a responsibility to make sure that we get the maximum return on the taxpayers’ dollar, rather than letting it sit," Demming said. "This bill would allow us to do just that."

Fitzpatrick also supported the bill, saying the state had excess funds that could be put to better use.

"We have a surplus of funds that we can utilize to better serve the people of Montana," Fitzpatrick said.

But other lawmakers, like Representative Steven Kelly, argued that protecting public funds from excessive risk was the priority.

"We have to protect the taxpayers’ dollars from any undue risk," Kelly said.

Critics of the bill also said that Bitcoin and other virtual currencies were too risky for state reserves.

"I think it's a foolhardy way to think about taxpayer dollars," said Representative Jessica Karjala.

Lawmakers also proposed an alternative amendment to the bill that would have authorized the state to use interest from the American Rescue Plan Act to finance the bill.

But the amendment also failed to secure enough votes.

The bill was largely divided on party lines, with the majority of Republicans voting in favor of it and all Democrats voting against it.

Montana is now part of a growing number of states that have rejected identical cryptocurrency reserve bills, including Wyoming, North Dakota, and Pennsylvania.

However, 19 other U.S. states are still waiting to review the crypto-related laws, with Arizona and Utah ahead of the curve as their respective bills move through Senate debates.

Montana's failed bill serves as a testament to the current debate across the nation on whether government investment plans ought to include space for digital assets.

While Montana's ruling effectively puts HB 429 on the back burner, the issue of Bitcoin reserves is far from going away. Legislators who favor digital currency investments will likely introduce similar legislation during subsequent sessions. For the present, Montana's dismissal indicates that volatility and regulatory concerns still have positives in the views of many state leaders.