Montana Says No to Bitcoin Reserve Bill

On February 22, Montana's House voted 41-59 against House Bill No. 429, which aimed to make Bitcoin a state reserve asset.

Montana’s House of Representatives have voted down a bill that would have made Bitcoin a state reserve asset in a major setback for crypto enthusiasts in the state.

On February 22, Montana’s House voted 41-59 against House Bill No. 429, which aimed to add Bitcoin to the list of assets that the state’s investment board can purchase.

The bill proposed creating a special fund for investing in precious metals, stablecoins, and digital assets. However, the bill stipulated that assets in the fund must have a market cap above $750 billion over the past year, a criteria that only Bitcoin currently meets.

Many lawmakers expressed concerns that the bill would allow the state’s investment board to make risky investments with taxpayer money. State Representative Steven Kelly argued that these types of investments were too risky and that taxpayer money needed to be protected.

Other lawmakers, like Representative Bill Mercer also criticised the bill. “I did not come here to do that,” he said, while another lawmaker added: “This smacks of speculation to me.”

However, some lawmakers, like Representative Lee Demming, believed the state should focus on maximizing returns on taxpayer money. Demming supported the bill, stating that it could help increase returns rather than holding onto stagnant funds. Bill sponsor Curtis Schomer argued that Montana’s investment board would lose purchasing power by sticking to traditional bonds, while Representative Steve Fitzpatrick emphasized the potential for better returns by investing in digital assets and precious metals.

While some saw promise in the bill, they suggested further amendments. House Bill No. 429 now seems unlikely to pass, effectively halting its progress unless reintroduced.

Twenty-four states have considered Bitcoin reserve legislation, including Texas and Ohio, though most of those bills are still active.