Montana House Rejects Bitcoin Reserve Bill
- Montana House rejects proposed Bitcoin reserve bill
- The bill aimed to allocate $50 million in cryptocurrency
- Concerns over risk to taxpayer funds cited as main reason for rejection
On February 22, 2025, Montana’s House of Representatives voted against House Bill No. 429, which sought to establish Bitcoin as a state reserve asset. The proposal, introduced by Representative Curtis Schomer, aimed to diversify the state’s investment portfolio by creating a special revenue account that could allocate up to $50 million for investments in stablecoins, precious metals, and cryptocurrencies.
Divided Views on Cryptocurrency Integration
The 41-59 vote against the bill highlighted the divide among legislators regarding the role of digital assets in public finance. While supporters believed that investing in cryptocurrencies could yield higher returns and position Montana as a forward-thinking player in finance, opponents, particularly fiscal conservatives, raised concerns about the speculative nature of Bitcoin and the risks associated with using taxpayer money for such investments.
Resistance from Fiscal Conservatives
During the House Floor Session, Representative Steven Kelly emphasized the need to protect taxpayer funds, 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.” Others, like Representative Jane Gillette and Representative Bill Mercer, also expressed doubts about the lack of clear guidelines for managing the funds and Bitcoin’s history of price volatility.
Advocates for Cryptocurrency Integration
On the other hand, supporters like Representative Lee Demming argued that embracing digital assets could safeguard Montana’s reserves against inflation and promote long-term financial growth. However, the rejection of HB 429 means that any future efforts to introduce similar legislation in Montana will have to start from scratch.
US States and Bitcoin Reserves
While Montana’s decision goes against the current trend, with approximately 24 states exploring Bitcoin as a reserve asset, other states like Utah, Arizona, Oklahoma, Texas, and Ohio have made progress in similar legislation. Globally, countries like Switzerland, Brazil, Japan, and Russia are also considering Bitcoin reserves as a strategic asset.
Despite the setback in Montana, advocates like Dennis Porter remain optimistic about the broader movement towards integrating Bitcoin into financial strategies. The decentralized nature and limited supply of Bitcoin make it an attractive hedge against economic uncertainty.
