- Montana House has rejected the Bitcoin reserve bill.
- The Bitcoin reserve bill aimed for $50M in crypto.
- The house cited threat to taxpayer funds.
On February 22, 2025, Montana’s House of Representatives decisively voted down House Bill No. 429, a proposal that aimed to determine Bitcoin (BTC) as a state reserve asset.
The 41-59 vote marked a big setback for advocates of integrating cryptocurrency into Montana’s monetary technique, highlighting a deep divide over the position of digital property in public finance.
Introduced by Representative Curtis Schomer earlier in February, the bill sought to diversify the state’s funding portfolio by making a particular income account. This account would have allowed the state treasurer to allocate as much as $50 million for investments in stablecoins, valuable metals, and cryptocurrencies with a market capitalization exceeding $750 billion over the previous 12 months, a threshold at the moment met solely by Bitcoin.
Supporters argued that such a transfer might yield larger returns than conventional bond investments, positioning Montana as a forward-thinking participant within the evolving monetary panorama.
Montana house representatives cautious of dangers concerned
Despite clearing the House Business and Labor Committee on February 19 with a 12-8 vote, backed by Republicans and opposed by Democrats, the bill confronted stiff resistance throughout its second studying within the House.
Fiscal conservatives, together with many Republicans, voiced considerations over the speculative nature of Bitcoin, emphasizing the state’s obligation to guard taxpayer cash.
Representative Steven Kelly captured this sentiment through 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, mentioning that the bill lacked clear pointers on how the funds could be managed, whereas Representative Bill Mercer warned that Bitcoin’s historical past of dramatic value swings made it an imprudent selection for public funds.
On the opposite facet, advocates like Representative Lee Demming argued that embracing digital property might safeguard Montana’s reserves in opposition to inflation and bolster long-term monetary progress, a perspective shared by Bitcoin proponents nationwide.
The rejection of HB 429 successfully kills the proposal for now, requiring any future efforts to begin anew in Montana’s legislature.
US states push for Bitcoin reserves
Montana’s choice stands in distinction to a rising development amongst US states exploring Bitcoin as a reserve asset.
Approximately 24 states, together with Utah, Arizona, Oklahoma, Texas, and Ohio, have launched related laws, with Utah’s HB230 making essentially the most progress by permitting as much as 5% of public funds to be invested in digital property.
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 Action 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 lovely hedge in opposition to financial uncertainty.
