In a major setback, Montana’s House Representatives have rejected a Bitcoin reserve bill.
Montana Says No to Bitcoin Reserve Bill?
On February 22, Montana’s House voted 41-59 against House Bill No. 429, which aimed to make Bitcoin a state reserve asset. Many lawmakers expressed concerns that the bill would allow the state’s investment board to make risky investments with taxpayer money.
The bill proposed creating a special fund for investing in precious metals, stablecoins, and digital assets. The bill, however, requires that assets in the fund must have a market cap above $750 billion over the past year, a criteria that only Bitcoin currently meets.
State Representative Steven Kelly argued that these types of investments were too risky and that taxpayer money needed to be protected. Other lawmakers, like Representative Bill Mercer too criticised the bill. “I did not come here to do that,” he said, while another lawmaker added: “This smacks of speculation to me.”
However, some lawmakers, like Representative Lee Demming, believed the state should focus on maximizing returns on taxpayer money. Demming supported the bill, stating that it could help increase returns rather than holding onto stagnant funds. Bill sponsor Curtis Schomer argued that Montana’s investment board would lose purchasing power by sticking to traditional bonds, while Representative Steve Fitzpatrick emphasized the potential for better returns by investing in digital assets and precious metals.
While some saw promise in the bill, they suggested further amendments. House Bill No. 429 now seems unlikely to pass, effectively halting its progress unless reintroduced.
Twenty-four states have considered Bitcoin reserve legislation, including Texas and Ohio, though most of those bills are still active.
Also Read: Texas Lawmakers Resubmit Bitcoin Reserve Act to Include Other Cryptocurrencies
