Montana’s Bitcoin Reserve Bill Fails to Pass House of Representatives
In a recent floor session, Montana lawmakers voted against House Bill 429, which aimed to allow the state to invest in Bitcoin, precious metals, and stablecoins.
The bill, which failed in a 41-59 vote, garnered concerns from legislators regarding the potential risks associated with using taxpayer money for such investments. The decision was made based on the perceived volatility of these assets outweighing any potential returns.
Despite initially passing Montana’s Business and Labor Committee with a 12-8 vote on Feb. 19, an amendment to fund the bill with interest earned from the American Rescue Plan Act was also rejected by the majority.
While most Republicans supported the bill, with 40 in favor and 18 opposed, Democrats unanimously voted against it. Representative Lee Demming argued during the House Floor session that the bill would have helped the state maximize returns on taxpayer money, emphasizing the need for responsible investment practices.
Representative Steve Fitzpatrick echoed this sentiment, stating that the state had excess funds that could be invested in assets like Bitcoin to generate higher returns.
On the opposing side, State Representative Steven Kelly expressed concerns about the risks involved in investing state funds in volatile assets like cryptocurrencies, emphasizing the need to protect taxpayer dollars from potential losses.
Montana now joins Wyoming, North Dakota, and Pennsylvania as states that have rejected similar bills, according to data from Bitcoin Reserve Monitor. Currently, 19 other states are reviewing crypto reserve legislation, with Utah and Arizona leading the way by advancing their bills to the Senate for further debate.