Montana Rejects Bill to Make Bitcoin a State Reserve Asset, Joining the Ranks of Other States

Montana's House of Representatives rejected House Bill No. 429 in a 41-59 vote on Feb. 22, blocking a proposal to make Bitcoin (BTC) a state reserve asset.

Montana lawmakers have rejected a bill that aimed to make Bitcoin (BTC) a state reserve asset, following concerns about financial risks and the potential misuse of taxpayer money.

Lawmakers in the state House of Representatives voted down House Bill No. 429 on Feb. 22 in a 41-59 vote, blocking a proposal to allocate a portion of the state’s reserves to Bitcoin. The bill faced opposition from several lawmakers who raised concerns over the volatility and speculative nature of cryptocurrency markets.

The bill proposed creating a special revenue account for investments in precious metals, stablecoins, and digital assets with a market capitalization of over $750 billion in the last year. Currently, Bitcoin is the only digital asset that meets this requirement.

Representative Steven Kelly (R-Miles City) opposed the bill, arguing that taxpayer funds should be protected and that such investments are risky.

“It’s still taxpayer money, and we’re responsible for it, and we need to protect it,” Kelly said, as quoted by local news outlet KTVH. “These types of investments are way too risky.”

Other lawmakers also expressed concerns about the state’s Board of Investments being permitted to invest in cryptocurrencies and non-fungible tokens (NFTs). Representative Bill Mercer (R-Billings) stated, “I did not come here to put taxpayer dollars into cryptocurrency or NFTs.” Another legislator described the bill as “speculation.”

However, some lawmakers supported the bill, arguing that Bitcoin could offer a higher return on taxpayer funds. Representative Lee Demming (R-Kalispell) stated that the state should maximize returns.

“If we’re going to keep the taxpayer’s money, I think we owe it to the taxpayers to get as high a return on that money that’s sitting in there, either that or you give it right back to them, so I’m going to vote on this bill for that reason,” Demming said.

The bill’s sponsor, Representative Curtis Schomer (R-Great Falls), argued that the state’s investment board would lose purchasing power by keeping funds in bonds instead of Bitcoin. He added that the board’s unused reserves could be used for digital assets.

“We can make a return to the taxpayer and ultimately that will allow us to give more money back, to cut taxes, and provide that fiscal relief that people are looking for,” Representative Steve Fitzpatrick (R-Great Falls) said.

Some lawmakers acknowledged the potential of House Bill No. 429 but suggested that amendments were needed.

“I think there’s merit to this bill, but I think there’s some work that needs to be done on it,” said Representative Jessica Karjala (D-Billings). “I think there’s some good conversation that can come out of this.”

Montana’s rejection of the Bitcoin reserve bill comes as at least 24 states have introduced similar legislation this year, according to Bitcoin Laws. Of these bills, 20 are still active in their respective state legislatures.

Notably, among U.S. states, Utah has made the most progress on a Bitcoin reserve bill. The Senate Revenue and Taxation Committee passed Utah’s HB230 ‘Blockchain and Digital Innovation Amendments’ bill on February 20, moving it to further readings before a final Senate vote.