TL;DR
- On February 22, 2025, the Montana House of Representatives rejected House Bill 429, which proposed Bitcoin as a state reserve asset, with a 41-59 vote.
- The bill sought to allow an investment of up to $50 million in cryptocurrencies, stablecoins, and precious metals, with Bitcoin being the only asset meeting the market capitalization requirement.
- Despite the rejection in Montana, over 24 U.S. states, such as Utah and Texas, are still exploring similar legislation to invest in digital assets.
On February 22, 2025, the Montana House of Representatives rejected House Bill 429, which aimed to include Bitcoin as a state reserve asset. With a 41-59 vote, the rejection of this initiative marked a significant obstacle for those advocating for integrating cryptocurrencies into the state’s public finances.
The bill, introduced by Representative Curtis Schomer, aimed to diversify Montana’s investments by creating a special revenue account. This account would have allowed the state treasurer to invest up to $50 million in assets like stablecoins, precious metals, and cryptocurrencies, as long as their market capitalization had exceeded $750 billion in the past year, a condition currently only met by Bitcoin.
Supporters of the bill argued that this move could generate higher returns than traditional bond investments, positioning Montana as a leader in the use of digital assets. However, the bill faced strong opposition, particularly from fiscal conservatives, who expressed concerns about Bitcoin’s speculative nature and the risks it would pose to public funds.
Despite the Rejection, Bitcoin Gains Ground in State Finances
Critics pointed out the lack of clear guidelines on how the funds would be managed and highlighted Bitcoin’s historical volatility as a negative factor for public investments. Some legislators even warned that the state has a responsibility to protect taxpayer money, and cryptocurrencies do not meet this requirement due to their unpredictable nature.
Despite this rejection, the trend toward using Bitcoin as a reserve asset continues to gain traction in other U.S. states. At least 24 states, including Utah, Arizona, Texas, and Ohio, have proposed similar legislation. In Utah, for example, HB230 legislation would allow up to 5% of public funds to be invested in digital assets.
Although Montana’s decision was a setback for the proponents of this proposal, it remains a relevant topic both at the state and global level. Countries like Switzerland, Brazil, and Japan are also considering Bitcoin as a potential strategic reserve
