Montana Rejects Bitcoin Reserve Bill, Utah Advances Proposal, Texas Holds Public Hearing

Montana's House of Representatives has voted against a proposal to designate Bitcoin as a state reserve asset. This decision contrasts with Utah's ongoing efforts to establish a Bitcoin reserve while Texas has held its first public hearing on the matter.

Montana’s House of Representatives has voted against a proposal to designate Bitcoin as a state reserve asset, contrasting with Utah’s efforts to establish a Bitcoin reserve and Texas’ first public hearing on the matter.

The bill aimed to create a special revenue account for investments in precious metals, stablecoins, and digital assets, with a focus on Bitcoin due to its market capitalization exceeding $750 billion on average in the past year. However, concerns arose regarding the speculative nature and volatility of digital assets, leading to opposition among lawmakers.

They prioritized safeguarding public money, arguing that digital assets were too risky an investment and that traditional bonds, while safer, offered lower yields, potentially eroding the value of public funds over time.

Despite proponents highlighting the possibility of generating higher returns and enhancing purchasing power by diversifying state investments, the bill was ultimately defeated by a 41-59 vote, reflecting the majority’s preference for caution.

Meanwhile, Utah is advancing its Bitcoin reserve initiative. The Blockchain and Digital Innovation Amendments bill (H.B. 230) is now in the Senate Revenue and Taxation Committee after being introduced on January 21, 2025.

The bill, which aims to incorporate Bitcoin into the state’s financial reserves, has gained momentum and bipartisan support, with an 8-1 vote in the House of Representatives.

If approved, Utah will be among the first states to integrate Bitcoin officially into its financial reserves, potentially setting a trend for other states to follow.

Moreover, Texas is also exploring the creation of a state-backed Bitcoin reserve. The state held its first public hearing on February 18 to discuss the establishment of a Strategic Bitcoin Reserve (SBR).

The hearing was intended to provide a platform for policymakers to examine the potential benefits and risks of including digital assets in the state’s financial strategy.

If the proposal advances, Texas will join the group of states that are actively integrating Bitcoin into their investment portfolios.