On February 22, Montana’s House voted against a bill that could have designated Bitcoin as a state reserve asset. Lawmakers expressed concerns that it might lead the state’s investment board to engage in excessive speculation with taxpayer funds.
The final tally for House Bill No. 429 was 41-59, with many Republicans opposing it. The bill aimed to establish a special revenue account for investing in precious metals, stablecoins, and digital assets averaging a market cap over $750 billion in the last year—a requirement only Bitcoin BTCUSD currently fulfills.
State Representative Steven Kelly commented during the House Floor Session, stating, “It’s still taxpayer money, and we’re responsible for it; we must protect it,” and emphasized that “these types of investments are far too risky.”
Representative Bill Mercer also expressed his discontent with allowing Montana’s Board of Investments to have the authority to invest in cryptocurrencies and non-fungible tokens.
“I did not come here to do that,” he stated, as another lawmaker remarked, “This smacks of speculation to me.”
🚨 MONTANA Update:
The Bitcoin Reserve bill HB 429 failed to progress past a second reading in the Montana House, effectively sealing its fate.
The vote concluded with 41 – 59. While it was primarily partisan, a number of Republicans sided against the bill.
ANALYSIS:
HB 429’s failure can be attributed to… pic.twitter.com/AJK8sPrf1N
On the other hand, Representative Lee Demming argued that Montana should seek to maximize returns on taxpayer investments, positing that the bill could promote that goal.
“If we’re going to keep the taxpayer’s money, we owe it to them to strive for the highest return on that money; otherwise, we should just refund it,” he stated, adding that he would support the bill for this reason.
Curtis Schomer, the bill’s sponsor, noted, “The only risk lies in not passing this bill,” pointing out that Montana’s investment board would lose purchasing power by continuing to invest in bonds.
Montana Representative Steve Fitzpatrick remarked that the state’s investment board “has a lot of money sitting idle” that could be better utilized by investing in these precious metals and digital assets.
“We can return value to the taxpayer, and ultimately this may allow us to provide more funds back, reduce taxes, and offer the fiscal relief that people seek.”
Some lawmakers recognized potential in House Bill No. 429 but suggested further amendments.
This outcome follows the Montana business and labor committee’s approval of House Bill No. 429 in a 12-8 vote on February 19, where all Republicans voted in favor and all Democrats opposed.
House Bill No. 429 is now effectively terminated, and any future proposals for a Bitcoin reserve would need to be reintroduced in Montana’s legislature.
A total of twenty-four states have proposed legislation to establish a Bitcoin reserve, including Arizona, Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, and Texas.
Bills in 20 of the 24 states remain active, according to Bitcoin Laws.
Utah has emerged as the most advanced state in regulatory progress regarding a Bitcoin reserve bill, having passed its HB230 “Blockchain and Digital Innovation Amendments” through the Senate Revenue and Taxation Committee on February 20.
The bill is now set for a second and third reading prior to a final vote in the Senate.
