Montana House Votes Down $50 Million Bitcoin Reserve Proposal

Montana House Votes Down $50 Million Bitcoin Reserve Proposal

TLDR:

• Montana’s House of Representatives voted 41-59 against House Bill 429, which would have allowed up to $50 million in state funds to be invested in crypto, stablecoins, and precious metals, with Bitcoin being the only cryptocurrency meeting the bill’s criteria.
• The bill faced strong opposition from lawmakers concerned about risking taxpayer money, despite supporters arguing it could provide better returns than traditional bonds.
• Montana joins North Dakota, Wyoming, and Pennsylvania in rejecting Bitcoin reserve proposals, while 19 other states still have pending legislation.
• Arizona’s Senate Finance Committee has advanced a bill allowing up to 10% of public funds to be invested in crypto, and Utah’s blockchain bill permitting 5% allocation to digital assets is under consideration.
• Several countries including Switzerland, Brazil, Japan, and Russia are exploring the possibility of including Bitcoin in their national reserve strategies.

The Montana House of Representatives has voted down a proposal that would have allowed the state to invest public funds in cryptocurrency and precious metals.

House Bill 429, which failed in a 41-59 vote on February 22, 2025, would have created a special revenue account permitting investments of up to $50 million in digital assets.

Representative Curtis Schomer, who introduced the bill earlier this month, designed it to include cryptocurrencies with market capitalizations above $750 billion. Currently, Bitcoin is the only digital asset meeting this threshold, with a market value of $1.8 trillion.

The bill’s defeat came despite arguments from supporters that it could help diversify the state’s investment portfolio and potentially deliver higher returns than traditional bond investments. Representative Lee Demming advocated for the proposal, stating that Montana should maximize returns on taxpayer money.

However, the opposition voiced strong concerns about the risks involved. State Representative Steven Kelly emphasized during the House Floor Session that protecting taxpayer money was paramount. “These types of investments are way too risky,” Kelly stated, reflecting a sentiment shared by many of his colleagues.

Representative Bill Mercer expressed particular concern about giving Montana’s Board of Investments discretion to invest in cryptocurrencies and non-fungible tokens, stating firmly, “I did not come here to do that.”

Other States

Montana’s decision aligns with similar outcomes in other states. North Dakota, Wyoming, and Pennsylvania have all previously rejected comparable Bitcoin reserve proposals, highlighting a pattern of caution among some state legislatures when it comes to cryptocurrency investments.

However, the picture varies considerably across the United States. According to Bitcoin Reserve Tracker data, approximately 19 state proposals remain under consideration. These include initiatives in Arizona, Illinois, Kentucky, Maryland, Oklahoma, New Hampshire, and Texas.

In Arizona, progress continues as the Senate Finance Committee has advanced legislation that would permit up to 10% of public funds, including pension systems, to be invested in cryptocurrency. The bill has moved to the Senate Rules Committee for further examination.

Texas is pursuing a dual approach, with two separate bills under consideration. One would allow up to 1% of the general revenue fund to be allocated to Bitcoin, while the other focuses on Bitcoin donations and cryptocurrency payment conversions.

Utah has emerged as a leader in this legislative movement. The state’s Blockchain and Digital Innovation Amendments bill, which would allow the state treasurer to allocate up to 5% of public funds to digital assets, has passed through the Senate Revenue and Taxation Committee on February 20, 2025.

The movement toward cryptocurrency adoption in state reserves extends beyond U.S. borders. Several countries, including Switzerland, Brazil, Japan, and Russia, are actively exploring the integration of Bitcoin into their national reserve strategies.

Representative Steve Fitzpatrick of Montana pointed out during debates that the state’s investment board “has a lot of money sitting in the bank” that could be put to better use. Similarly, bill sponsor Curtis Schomer warned that continuing to invest solely in bonds could result in lost purchasing power.

While Montana’s House Bill 429 is now effectively dead, any future Bitcoin reserve legislation would need to be reintroduced into the state’s legislature. The bill’s journey through the legislative process included initial success in the business and labor committee, where it passed in a 12-8 vote on February 19, with Republican support and Democratic opposition.

For states still considering similar legislation, the debate continues to center around balancing potential investment returns with the responsibility to safeguard public funds. Each state’s approach reflects local priorities and risk tolerance levels in managing public resources.

The legislative landscape continues to evolve, with some states moving forward cautiously while others pursue more aggressive adoption strategies. As of early 2025, twenty-four states have introduced legislation to establish Bitcoin reserves, with twenty of these proposals still active.

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