- Montana lawmakers rejected a bill to create a Bitcoin reserve due to financial risks and concerns about taxpayer funds.
- The bill proposed a $50 million investment in digital assets but failed to pass the second reading in the House.
- Montana joins other states that have considered but not approved Bitcoin reserve bills due to financial uncertainty.
Montana’s House Bill No. 429, which proposed the creation of a state Bitcoin reserve, has failed in the House of Representatives. The bill did not pass the second reading, with 41 lawmakers supporting it and 59 voting against it.
The House Business and Labor Committee initially backed the bill during its review on February 19. The bill suffered a defeat on February 22 when it lost support due to powerful resistance from fiscally conservative members. Numerous Republican lawmakers who previously indicated support for the bill ended up voting against its passage.
Proposed Bitcoin Reserve and Investment Plans
If passed, the bill would have positioned Montana among the few U.S. states considering Bitcoin reserves. The legislation proposed a special revenue account for investments in precious metals, stablecoins, and digital assets. It also specified that eligible digital assets must have had an average market capitalization exceeding $750 billion over the past year.
As of now, only Utah, Arizona, and Oklahoma have taken similar Bitcoin reserve proposals to their respective House legislative stages. The attempt by Montana faced resistance from lawmakers concerned about financial risks and the potential impact on state funds.
Lawmakers Raise Concerns Over Risks
During the House floor session, concerns emerged about the clarity of the objectives of the bill. Some legislators questioned whether taxpayer money should be allocated to cryptocurrency investments. Others viewed the proposal as speculative and financially risky. They emphasized the need to protect public funds from potential volatility.
Despite opposition, some lawmakers supported the initiative, arguing that the state should explore new investment strategies. The proposed Bitcoin reserve was seen as a way to maximize returns on taxpayer money. If approved, Montana’s state treasurer would have allocated $50 million for the fund by mid-July 2025.
Montana Joins States Hesitant on Bitcoin Reserves
The bill was introduced by Representative Gayle Lammers and co-sponsored by Representative Curtis Schomer. Industry experts and crypto advocates had closely followed its progress. The failure of this bill marks another instance of legislative hesitation toward cryptocurrency adoption at the state level.
Montana now joins a growing list of states that have considered but not successfully passed Bitcoin reserve bills. The outcome reflects broader uncertainty about integrating digital assets into government-backed financial systems.
