Montana Rejects Bitcoin Reserve Bill as States Debate Crypto in Public Funds

Several U.S. states are exploring the possibility of establishing Bitcoin reserves, even as President Donald Trump pushes for a national Bitcoin strategy. However, not all states are on board with this initiative.

In a recent decision, the Montana House of Representatives rejected a proposed bill aimed at creating a Bitcoin reserve. House Bill No. 429, which sought to establish an investment fund for Bitcoin, stablecoins, and precious metals while maintaining a market value above $750 billion, was voted down by a margin of 59 to 41.

Many lawmakers expressed concerns over the risks associated with cryptocurrency investments, questioning the stability and long-term viability of Bitcoin in state financial planning.

Representative Steven Kelly emphasized the need to safeguard taxpayers’ money, stating, “These types of investments are very risky, and we have a responsibility to protect state funds.”

READ MORE:

Bitcoin’s Path to a New All-Time High: Strategist Predicts $126,000 by April

Despite this opposition, the bill’s sponsor, Curtis Schomer, argued that failing to pass the legislation posed an even greater risk. He warned that continued investment in traditional bonds could erode Montana’s purchasing power, suggesting that alternative assets like Bitcoin and precious metals might offer better long-term stability.

The rejection of the bill comes at a time when at least 24 states, including Arizona, Illinois, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, and Texas, have introduced similar proposals to incorporate Bitcoin into their financial strategies.

The debate in Montana underscores the growing divide among policymakers regarding the role of cryptocurrency in government reserves, with some viewing it as a necessary financial innovation while others remain hesitant due to regulatory and market uncertainties.

Alexander Stefanov