Key Points
- Montana’s House Bill No. 429, aimed at creating a Bitcoin reserve, was rejected in a 41-59 House vote.
- Despite Montana’s rejection, twenty U.S. states continue to advance similar Bitcoin reserve legislation.
Montana’s attempt to establish a Bitcoin Reserve has encountered a setback. The state’s House Bill No. 429, which sought to create a special revenue account for investing in precious metals, stablecoins, and high-market-cap digital assets, did not pass the House of Representatives.
Despite Bitcoin being the only asset that met the bill’s stringent $750 billion market cap requirement, the bill was defeated in a 41-59 vote, with several Republicans opposing the measure during the most recent floor session.
Reasons for the Bill’s Rejection
State Representative Steven Kelly voiced his concerns about the bill, stating that such investments were too risky. He emphasized that as lawmakers, they were responsible for protecting taxpayer money.
An amendment suggesting the bill be funded by the interest earned from the American Rescue Plan Act was proposed but failed to gain sufficient support. While a majority of Republicans backed the bill, with 40 voting in favor, 18 opposed it, joining the Democrats’ unanimous resistance.
Views of Other Executives
Representative Lee Demming, however, argued that if the state retained taxpayer money, it had a duty to maximize returns for the public’s benefit. On the other hand, Representative Bill Mercer expressed concerns about giving Montana’s Board of Investments the authority to invest in cryptocurrencies and NFTs.
Despite some lawmakers recognizing the potential of House Bill No. 429, calls for further amendments weren’t enough to secure its passage.
Montana’s recent move contradicts the approach of other states. The bill, which had previously advanced through Montana’s business and labor committee with full Republican support, ultimately failed in the House, effectively ending its prospects for now.
To reintroduce a Bitcoin reserve initiative, fresh legislation would need to be proposed in future sessions. Meanwhile, 24 states across the U.S. are pursuing similar legislation, with 20 bills still active in states like Arizona, Texas, and Ohio.
Montana now joins Wyoming, North Dakota, and Pennsylvania as one of the few states to reject such proposals, even as other states, including Utah and Arizona, push their bills forward for Senate debate.
