Montana Lawmakers Reject Bill to Create State Bitcoin Reserve

Montana House Rejects Bitcoin Reserve Bill in 41-59 Vote Amid Risk Concerns

  • Montana House of Representatives rejected Bitcoin reserve bill with a 41-59 vote.
  • The bill would have allowed investment in assets maintaining $750 billion market cap, currently only Bitcoin qualifies.
  • Republican lawmakers expressed concerns over taxpayer money protection.
  • The proposal included investments in precious metals and stablecoins alongside Bitcoin.
  • State representatives cited excessive risk as the primary reason for rejection.

Montana legislators have voted against a groundbreaking proposal that would have established Bitcoin as a state reserve asset, marking a significant setback for cryptocurrency adoption at the state government level.

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The House Bill No. 429, which was rejected by a margin of 41-59 votes on February 22, proposed creating a specialized revenue account for investing in digital assets, precious metals, and stablecoins. The bill’s criteria specifically targeted assets maintaining a market capitalization above $750 billion over the previous calendar year – a threshold that currently only Bitcoin meets.

State Representative Steven Kelly voiced concerns during the House Floor Session, stating, “It’s still taxpayer money, and we’re responsible for it, and we need to protect it… these types of investments are way too risky.”

The rejection reflects growing caution among state legislators regarding cryptocurrency investments using public funds. This development comes as various U.S. states explore different approaches to cryptocurrency regulation and adoption, with some states like Wyoming already implementing crypto-friendly legislation through their special purpose depository institutions (SPDIs).

The proposed bill would have positioned Montana as one of the first states to hold Bitcoin as a reserve asset, potentially setting a precedent for other state governments considering similar initiatives. Market volatility and regulatory uncertainty continue to influence governmental decisions regarding cryptocurrency adoption.

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