Montana Lawmakers Reject House Bill 429 Due to Concerns Over ‘Risky Investments’ in Bitcoin Reserve
Montana’s proposal to create a Bitcoin reserve, known as House Bill No. 429, has failed in a recent vote in the state’s House of Representatives, with a 41-59 decision. This bill aimed to set up a special account for investing in precious metals, stablecoins, and other high-value digital assets, but it faced strong opposition that ended its chances of moving forward.
Despite the rejection in Montana, interest in establishing Bitcoin reserves is growing in other parts of the United States. Around 24 states are either working on or actively discussing similar legislation related to Bitcoin. This comes in light of former President Donald Trump’s idea of a national Strategic Bitcoin Reserve. Interestingly, while Montana’s bill was still in play, it was noted that Bitcoin was the only asset that met the bill’s requirement of having a market value of at least $750 billion.
State Representative Steven Kelly expressed concerns during the legislative session, stressing that taxpayer money needs to be safeguarded. He noted, “It’s still taxpayer money, and we’re responsible for it, and we need to protect it.” Kelly indicated that investments in Bitcoin and similar assets carry significant risks that he believed were unacceptable for taxpayer funds. An amendment that would have allowed funding for the bill through interest earned from federal rescue funds was suggested but did not gain enough support to pass.
The voting on the bill saw some support from Republicans, with 40 backing it, but 18 opposed it, and all Democrats voted against it. While some lawmakers, like Representative Lee Demming, argued that the bill could provide better returns on taxpayer investments, others remained skeptical. Demming believed it was important for the state to maximize the returns on taxpayer funds, stating, “If we’re going to keep the taxpayer’s money, I think we owe it to the taxpayers to get as high a return on that money.”
On the other hand, Representative Bill Mercer raised alarms about allowing the Board of Investments in Montana to engage in cryptocurrencies and NFTs, stating, “I did not come here to do that.” Concerns about speculation were echoed by other lawmakers as well, who felt that investing in Bitcoin and NFTs seemed too uncertain.
Despite some lawmakers acknowledging the potential of the Bitcoin reserve concept, their calls for further amendments were insufficient to help the bill pass the House. The previous support the bill had received in the business and labor committee did not translate into success when it reached the full House for a vote.
With this recent outcome, Montana now joins a small group of states—such as Wyoming, North Dakota, and Pennsylvania—that have turned down Bitcoin reserve proposals. In contrast, around 20 other states, including Arizona, Texas, and Ohio, are actively pursuing their own laws to establish similar Bitcoin reserve initiatives. If Montana wishes to revisit the idea of a Bitcoin reserve, new legislation will need to be introduced in future legislative sessions. Meanwhile, states like Utah and Arizona continue to advance their bills, illustrating a growing divide in how different states are approaching the issue of cryptocurrency investment.
