- Montana Home has rejected the Bitcoin reserve invoice.
- The Bitcoin reserve invoice aimed for $50M in crypto.
- The home cited threat to taxpayer funds.
On February 22, 2025, Montana’s Home of Representatives decisively voted down Home Invoice No. 429, a proposal that aimed to ascertain Bitcoin (BTC) as a state reserve asset.
The 41-59 vote marked a major setback for advocates of integrating cryptocurrency into Montana’s monetary technique, highlighting a deep divide over the function of digital belongings in public finance.
Launched by Consultant Curtis Schomer earlier in February, the invoice sought to diversify the state’s funding portfolio by making a particular income account. This account would have allowed the state treasurer to allocate up to $50 million for investments in stablecoins, valuable metals, and cryptocurrencies with a market capitalization exceeding $750 billion over the previous yr, a threshold presently met solely by Bitcoin.
Supporters argued that such a transfer may yield greater returns than conventional bond investments, positioning Montana as a forward-thinking participant within the evolving monetary panorama.
Montana home representatives cautious of dangers concerned
Regardless of clearing the Home Enterprise and Labor Committee on February 19 with a 12-8 vote, backed by Republicans and opposed by Democrats, the invoice confronted stiff resistance throughout its second studying within the Home.
Fiscal conservatives, together with many Republicans, voiced considerations over the speculative nature of Bitcoin, emphasizing the state’s obligation to guard taxpayer cash.
Consultant Steven Kelly captured this sentiment in the course of the Home Flooring 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.”
Consultant Jane Gillette echoed these doubts, mentioning that the invoice lacked clear pointers on how the funds can be managed, whereas Consultant Invoice Mercer warned that Bitcoin’s historical past of dramatic price swings made it an imprudent selection for public funds.
On the opposite aspect, advocates like Consultant Lee Demming argued that embracing digital belongings may safeguard Montana’s reserves towards inflation and bolster long-term monetary development, a perspective shared by Bitcoin proponents nationwide.
The rejection of HB 429 successfully kills the proposal for now, requiring any future efforts to start out anew in Montana’s legislature.
US states push for Bitcoin reserves
Montana’s resolution stands in distinction to a rising development amongst US states exploring Bitcoin as a reserve asset.
Roughly 24 states, together with Utah, Arizona, Oklahoma, Texas, and Ohio, have launched comparable laws, with Utah’s HB230 making probably the most progress by permitting up to five% of public funds to be invested in digital belongings.
Nationally and globally, the push for Bitcoin reserves is gaining traction, with international locations like Switzerland, Brazil, Japan, and Russia additionally weighing the cryptocurrency’s potential as a strategic asset.
Dennis Porter, CEO of the Satoshi Motion Fund, which collaborated with Montana legislators like Schomer and Senator Daniel Zolnikov, expressed disappointment with Montana’s transfer however remained optimistic concerning the broader motion. He famous that Bitcoin’s decentralized construction and restricted provide make it a pretty hedge towards financial uncertainty.