Montana House Decisively Rejects Bill to Establish Bitcoin as a State Reserve Asset

The 41-59 vote marked a significant setback for advocates of integrating cryptocurrency into Montana's financial strategy, highlighting a deep divide over the role of digital assets in public finance.

Montana lawmakers have voted down a bill that would have made Bitcoin a state reserve asset, dealing a blow to cryptocurrency proponents in the state.

House Bill No. 429, introduced earlier this month, aimed to diversify the state’s investment portfolio by creating a special revenue account. The account would have allowed the state treasurer to allocate up to $50 million for investments in stablecoins, precious metals, and cryptocurrencies with a market capitalization exceeding $750 billion over the past year. Currently, only Bitcoin meets this threshold.

The bill was supported by some lawmakers who argued that such a move could yield higher returns than traditional bond investments, and would position Montana as a forward-thinking player in the evolving financial landscape.

However, the bill faced stiff resistance during its second reading in the House on Wednesday. Many fiscal conservatives, including Republicans, voiced concerns over the speculative nature of Bitcoin, emphasizing the state’s duty to protect taxpayer money.

Representative Steven Kelly captured this sentiment during the House Floor Session, stating, “It’s still taxpayer money, and we’re responsible for it. We need to protect it. These types of investments are way too risky.”

Representative Jane Gillette echoed these doubts, pointing out that the bill lacked clear guidelines on how the funds would be managed, while Representative Bill Mercer warned that Bitcoin’s history of dramatic price swings made it an imprudent choice for public funds.

On the other side, advocates like Representative Lee Demming argued that embracing digital assets could safeguard Montana’s reserves against inflation and bolster long-term financial growth, a perspective shared by Bitcoin proponents nationwide.

The rejection of HB 429 effectively kills the proposal for now, requiring any future efforts to start anew in Montana’s legislature.

Several US states have been pushing to include Bitcoin in their state reserves. Approximately 24 states, including Utah, Arizona, Oklahoma, Texas, and Ohio, have introduced similar legislation. Of these, Utah’s HB230 has advanced the furthest, clearing both the House and Senate, and now awaits the governor’s signature. The bill would allow up to 5% of public funds to be invested in digital assets.

Nationally and globally, the push for Bitcoin reserves is gaining steam, with countries like Switzerland, Brazil, Japan, and Russia also considering the cryptocurrency’s potential as a strategic asset.

The Satoshi Action Fund, a non-profit organization dedicated to advancing sound monetary policy, has been collaborating with Montana legislators like Schomer and Senator Daniel Zolnikov to integrate Bitcoin into the state’s financial framework.

Dennis Porter, CEO of the Satoshi Action Fund, expressed disappointment with Montana’s decision but remained optimistic about the broader movement. He noted that Bitcoin’s decentralized structure and limited supply make it an attractive hedge against economic uncertainty.

“We’re disappointed that the Montana House of Representatives voted down a bill that would have allowed a small portion of state funds to be invested in sound money like Bitcoin, but we’re encouraged by the effort and the growing interest in this issue,” said Porter.

“Bitcoin is a decentralized, hard-capped digital asset that serves as a superior store of value, especially in the face of rising inflation and government overspending. Its inclusion in state reserves would not only secure a brighter financial future for Montana but also set an example for other states to follow.”