Key Points
- Montana’s House Bill No. 429, which aimed to establish a Bitcoin reserve, failed in a 41-59 House vote.
- Twenty other U.S. states are still advancing similar Bitcoin reserve legislation despite Montana’s rejection.
The drive to establish a Bitcoin (BTC) Reserve in various U.S. states has hit a snag in Montana. The state’s House Bill No. 429, which aimed to create a special account for investing in precious metals, stablecoins, and high-market-cap digital assets, did not pass the House of Representatives. Despite Bitcoin being the only asset meeting the bill’s $750 billion market cap requirement, it was rejected in a 41-59 vote.
Reasons for the Rejection
State Representative Steven Kelly voiced his concerns during Montana’s House Floor Session on February 22nd, stating that such investments were too risky. An amendment to fund the bill using interest from the American Rescue Plan Act was proposed but failed to gain enough support. While a majority of Republicans supported the measure, 18 opposed it, joining the unanimous resistance from Democrats.
However, Representative Lee Demming emphasized the potential benefits of the bill, arguing that if the state retained taxpayer money, it had a responsibility to maximize returns. Despite some lawmakers recognizing the potential of House Bill No. 429, calls for further amendments were not enough to secure its passage.
Contradictory Approaches in Other States
The bill, which had previously advanced through Montana’s business and labor committee with full Republican support, ultimately failed in the House. To reintroduce a Bitcoin reserve initiative, fresh legislation would need to be proposed in future sessions. Meanwhile, 24 states across the U.S. are pursuing similar legislation, with 20 bills still active in states like Arizona, Texas, and Ohio. Montana now joins Wyoming, North Dakota, and Pennsylvania as one of the few states to reject such proposals.
