Montana Adds to the Increasing Number of US States Rejecting Bitcoin Reserve Legislation

Montana’s initiative to allocate public funds to Bitcoin faced a setback on Friday as a proposed legislation did not secure approval in the House of Representatives.

House Bill 429, which was introduced by Representative Curtis Schomer earlier this month, aimed to establish a dedicated revenue account that would permit the allocation of up to $50 million for cryptocurrencies, stablecoins, and precious metals.

According to Schomer, the purpose was to diversify the state’s asset portfolio and potentially achieve greater returns compared to traditional bond investments.

Although Bitcoin (BTC) was the sole digital asset meeting the criteria established by the bill, with a market capitalization of $1.8 trillion, it faced significant resistance from lawmakers, resulting in a House vote of 41-59.

Montana thus joins an increasing number of states that have turned down Bitcoin reserve proposals, including North Dakota, Wyoming, and Pennsylvania.

While Montana has chosen a cautious approach, the movement towards Bitcoin reserves is gaining traction in other states, with several moving ahead of the federal government in incorporating cryptocurrencies into public finance.

According to data from the Bitcoin Reserve Tracker, around 19 state proposals remain under consideration, including those in Arizona, Illinois, Kentucky, Maryland, Oklahoma, New Hampshire, and Texas.

Utah’s Blockchain and Digital Innovation Amendments bill, which permits the state treasurer to allocate up to 5% of public funds to digital assets, is also still under review.

Arizona’s Senate Finance Committee has advanced a bill proposing that up to 10% of public funds, including pension systems, be permitted to invest in cryptocurrencies.

The legislation will now proceed to the Senate Rules Committee for further review and, if approved, will move on to the House of Representatives for additional deliberation.

Texas is also examining two separate bills: one allowing up to 1% of the general revenue fund to be directed towards Bitcoin and another focused on facilitating Bitcoin donations and conversion to cryptocurrencies.

Meanwhile, nations such as Switzerland, Brazil, Japan, and Russia are also investigating the viability of incorporating Bitcoin into their national reserve strategies.

Edited by Sebastian Sinclair