Montana’s House of Representatives has voted against a bill that sought to designate Bitcoin as a state reserve asset. The measure, House Bill No. 429, was defeated on Feb. 22 with a 41-59 vote, as lawmakers voiced concerns over the potential financial risks associated with investing taxpayer money in cryptocurrency.
The bill proposed establishing a special revenue account to invest in precious metals, stablecoins, and digital assets that have maintained an average market capitalization above $750 billion over the past year. Under this criterion, Bitcoin was the only eligible asset at the time of the vote.
State Representative Steven Kelly emphasized the importance of financial responsibility when handling public funds. “It’s still taxpayer money, and we’re responsible for it, and we need to protect it,” Kelly stated during the House Floor Session, adding that “these types of investments are way too risky.”
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Concerns over speculation also played a role in the bill’s rejection. Representative Bill Mercer expressed his reservations about granting Montana’s Board of Investments the authority to invest in cryptocurrencies and non-fungible tokens. “I did not come here to do that,” Mercer stated, while another lawmaker described the proposal as speculative.
The bill had earlier passed Montana’s Business and Labor Committee in a 12-8 vote on Feb. 19, with all Republican members in favor and all Democrats opposed. However, its failure in the House means that any future attempt to establish a Bitcoin reserve will require a new bill to be introduced.
Montana joins several other states in considering cryptocurrency-related legislation. So far, 24 states, including Arizona, Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, and Texas, have introduced similar proposals.
