The House of Representatives of Montana has turned down a measure to include Bitcoin (BTC) in the state’s reserve assets. On February 22, House Bill No. 429 was rejected in a 41-59 vote, with opponents citing worries about the hazards connected with investing public money in unpredictable digital assets.
With an average market capitalization over the past year topping $750 billion, the measure sought to establish a special revenue account to invest in precious metals, stablecoins, and digital assets—a criterion now only attained by Bitcoin. While many legislators worried the possible hazards exceeded the advantages, supporters claimed such an investment may provide more returns for the state.
State Representative Steven Kelly expressed strong opposition, emphasizing the need to safeguard public monies. “We have to guard taxpayer money since it is still of value. Kelly said during the House session, these kinds of investments are far too dangerous. Reflecting similar feelings, Representative Bill Mercer expressed concern about letting the state’s investment board make non-fungible token (NFT) and bitcoin investments. Another lawmaker said, “This smells of speculation to me.”
Notwithstanding the opposition, several legislators thought the measure might have helped taxpayers. Supporting the legislation, Representative Lee Demming said that maximizing returns on public money should take front stage. “We owe it to the people to produce the highest possible return or give the money back if we are going to hold taxpayer money,” he said. Rejecting the plan, according to bill sponsor Curtis Schomer, increased risk since it would affect buying power and limit the state’s investment strategy.
Furthermore, as noted by Representative Steve Fitzpatrick, significant funds were managed by Montana’s investment board, which would have been better used by diversifying into digital assets and precious metals. Such expenditures, he proposed, may eventually lower taxes and give locals financial relief.
Supported by all Republicans and opposed by all Democrats, the bill first passed Montana’s business and labor committee on February 19 with a 12-8 vote but lacked enough support in the whole House vote. With this denial, any future initiatives to create a Bitcoin reserve in Montana will call for fresh legislative work.
Montana is not alone in thinking of Bitcoin as a state asset. Several states, including Arizona, Illinois, Kentucky, Maryland, and Texas, have presented similar measures. While 20 of these bills are still active, Utah has made the most progress, advancing its HB230 “Blockchain and Digital Innovation Amendments” bill through the Senate Revenue and Taxation Committee on February 20. The measure still needs several readings before a deciding vote.
Montana’s choice emphasizes the continuous argument over striking a balance between financial innovation and financial responsibility as authorities keep investigating bitcoin investments.
