Key Points
- Montana’s House of Representatives voted against House Bill 429, which proposed state investment in Bitcoin, precious metals, and stablecoins.
- The bill’s failure was largely due to concerns over the volatility of such investments and the potential risk to taxpayer money.
Montana’s proposed bill to allow state investment in Bitcoin, precious metals, and stablecoins, known as House Bill 429, was rejected by the House of Representatives.
The bill was voted down in a 41-59 vote, with lawmakers expressing concerns about the potential risks of using taxpayer money for such volatile investments.
Bill’s Journey
Despite failing to pass the House, the bill had previously been approved by Montana’s Business and Labor Committee on February 19 with a 12-8 vote.
An amendment to fund the bill with interest from the American Rescue Plan Act was proposed, but it failed to convince the majority of lawmakers.
While the bill was supported by a majority of Republicans, 18 opposed it. The bill faced unanimous opposition from Democrats.
Representative Lee Demming argued that the bill could have helped the state secure better returns on taxpayer money.
Opposition and Support
Representative Steve Fitzpatrick agreed, suggesting that the state’s surplus funds could be invested in assets like Bitcoin, precious metals, and stablecoins for better returns.
However, others like State Representative Steven Kelly argued the bill posed too much risk for taxpayers. Kelly emphasized the lawmakers’ duty to safeguard public funds and deemed investments in volatile assets like cryptocurrencies as too risky for state money.
Another critic labeled the bill as a “foolhardy way to think about taxpayer dollars.”
Montana now joins Wyoming, North Dakota, and Pennsylvania as the only four U.S. states that have rejected similar bills.
Currently, 19 other states are considering crypto reserve legislation, with Utah and Arizona leading the way—both states have advanced their bills to their respective Senate floors for further debate.
