Montana Says "No" to Bitcoin: State Rejects Reserve Proposal

Montana Votes Down Bitcoin Reserve Bill

Montana House Bill No. 429 to create a state-backed Bitcoin reserve was voted down by the Montana House of Representatives in a 41-59 vote on February 22, 2025. The bill proposed setting up a special revenue fund to invest up to $50 million in precious metals, stablecoins, and cryptocurrencies, specifically the ones with over $750 billion market capitalization in the last year, and this threshold was reached only by Bitcoin. Failure of the bill means that if anyone wants to introduce such an initiative in the future, it will have to begin from square one in the state legislature.

Reasons for the Bill's Rejection

The bill was rejected because of lawmakers' apprehensions about the speculative nature of Bitcoin and the risks to taxpayer dollars. Representative Steven Kelly underscored the importance of safeguarding taxpayer money, stating that such investments were "way too risky". Other apprehensions were expressed about the lack of clear rules for handling the funds proposed. Although some of its proponents, such as Representative Lee Demming, argued in favor of the potential of digital assets to offer greater returns and hedge against inflation, the bill was opposed by most Republicans based on concerns over volatility and speculation.

Broader Context and Future Implications

In spite of Montana's choice, such plans are being proposed in other nations and states. Arizona and Utah have bills awaiting approval on cryptocurrency investments, with nations such as Switzerland and Brazil looking into the inclusion of Bitcoin in their national reserve plans. This Montana rejection highlights the existing controversy and diverse methods of adopting digital assets in government financial planning