US Montana Lawmakers Push Back Against Bitcoin Reserve Bill

• Montana lawmakers voted 41-59 against letting Bitcoin into state reserves.
• Lawmakers rejected the bill due to concerns about its volatility and taxpayer risk.

Montana’s legislature rejected House Bill 429, seeking to authorize state investment in Bitcoin, stablecoins, and precious metals. The lawmakers voted 41-59 against the bill, with the legislators purporting that the potential dangers of having taxpayers’ funds used to make investments in risky assets are a concern. Although the bill had passed the Business and Labor Committee by a 12-8 vote on February 19, it could not get wider support during the recent House floor session.

The proponents of the bill maintained that investing in Bitcoin and other investments would enable the state to earn better returns on excess funds. Representative Lee Demming insisted that Montana had a responsibility to ensure maximum returns on taxpayers’ money instead of allowing it to remain idle. Representative Steve Fitzpatrick supported the bill and cited the state’s surplus funds as an opportunity for better utilization.

Bitcoin Reserve Bill Defeated in Montana

Despite these arguments, the opposition remained high. Representative Steven Kelly and other lawmakers argued that protecting public funds from excessive risk was the priority. Critics denounced Bitcoin and similar virtual currencies as too risky for state reserves, with one lawmaker calling the proposal a “foolhardy way to think about taxpayer dollars.”

Lawmakers proposed an alternative amendment to finance the bill with interest from the American Rescue Plan Act, but it failed to secure enough votes. The bill was divided on party lines with the majority of Republicans voting in favor of it and Democrats unanimously voting against it. In the end, market volatility and the fear of financial loss led to its defeat.

Montana is now part of Wyoming, North Dakota, and Pennsylvania rejecting identical cryptocurrency reserve bills. It is, however, 19 other U.S. states waiting to review the crypto-related laws, with Arizona and Utah ahead of the curve as their respective bills move through Senate debates. Montana’s failed bill serves as a testament to the current debate across the nation on whether government investment plans ought to include space for digital assets.

While Montana’s ruling effectively puts HB 429 on the back burner, the issue of Bitcoin reserves is far from going away. Legislators who favor digital currency investments will likely introduce similar legislation during subsequent sessions. For the present, Montana’s dismissal indicates that volatility and regulatory concerns still have positives in the views of many state leaders.