Montana House rejected the Bitcoin Reserve Bill. The Bitcoin Reserve bill aimed at a $50 million crypto. The House cited risks to taxpayer funds.
On February 22, 2025, Montana lawmakers voted decisively on House Bill 429, a proposal aimed at establishing Bitcoin (BTC) as a state reserve asset.
The 41-59 vote was a significant setback to supporting the integration of cryptocurrency into Montana’s financial strategy, highlighting the deep disparities regarding the role of digital assets in finance.
Introduced by Representative Curtis Schaumer in the beginning of February, the bill sought to diversify the state’s investment portfolio by creating special revenue accounts. The account would have allowed state accounts to allocate up to $50 million to investments in stubcoins, precious metals and cryptocurrency, with market capitalizations of over $700 billion over the past year.
Supporters argue that such a move could lead to higher returns than traditional bond investments, and position Montana as a leading player in the evolving financial landscape.
Montana House representatives are wary of the risks involved
Despite being supported by Republicans on February 19th and clearing the House Business and Labor Committee with 12-8 votes against Democrats, the bill faces severe resistance during its second reading in the House I did.
Fiscal conservatives, including many Republicans, expressed concern over the speculative nature of Bitcoin, highlighting the state’s obligation to protect taxpayer money.
Rep. Stephen Kelly captured the sentiment during a House floor session, saying, “It’s still taxpayer money and we’re responsible for it. We need to protect it. These types of investments are too dangerous.”
Rep. Jane Gillette repeated these questions, and while the bill lacked clear guidelines on how to manage funds, President Bill Mercer said that the history of Bitcoin’s dramatic price fluctuations is due to public funding. He warned that this would be a rude choice.
On the other side, supporters like Lee Demming argued that adopting digital assets could protect Montana’s reserves against inflation and strengthen long-term financial growth. This is a shared perspective among Bitcoin proponents across the country.
HB 429’s rejection is now effectively killing the proposal and calling for future efforts to start anew in the Montana Legislature.
US states are driving Bitcoin reserves
Montana’s decision contrasts with the growth trends of US states exploring Bitcoin as a reserve asset.
Around 24 states, including Utah, Arizona, Oklahoma, Texas and Ohio, have implemented similar laws, with Utah’s HB230 being able to invest up to 5% of its public funds in digital assets. is making progress.
The promotion of Bitcoin reserves has gained momentum nationwide and worldwide, and countries such as Switzerland, Brazil, Japan, and Russia are also placing emphasis on the potential of cryptocurrency as a strategic asset. Masu.
Dennis Porter, CEO of the Satoshi Action Fund, who worked with Montana legislators such as Shomer and Senator Daniel Zolnikov, expressed disappointment with the Montana move, but was optimistic about the wider move. He noted that Bitcoin’s decentralized structure and limited supply make it an attractive hedge against economic uncertainty.
