Key Points
- Montana’s House Business and Labor Committee has advanced a bill proposing investments in Bitcoin, precious metals, and stablecoins.
- If passed, a special state revenue account will be established for investments in these assets.
The Business and Labor Committee in Montana has moved forward with a bill advocating for investments in digital assets, precious metals, and stablecoins. This legislation, known as House Bill 429, was introduced by Representative Curtis Schomer and has successfully passed its first significant obstacle with a 12-8 committee vote on Feb. 19.
Despite resistance from Democrats, the bill garnered sufficient backing from Republicans to progress. The bill is now headed to the full Montana House for a vote. If it gains approval there, it will then proceed to the state Senate for further discussion and endorsement. The final step for the bill to become law would be the governor’s signature.
Investing in Digital Assets
If the bill is enacted, a special state revenue account will be established in Montana, dedicated to investing in digital assets, precious metals, and stablecoins. The state treasurer will be authorized to transfer up to $50 million from the general fund into this account by July 15, 2025. The Montana Board of Investments will manage these funds and allocate them to assets deemed suitable under the bill’s criteria.
Digital assets, as defined by the bill, include virtual currencies, cryptocurrencies, stablecoins, and other blockchain-based assets with economic or proprietary rights. However, to be eligible for investment, a digital asset must have a market capitalization exceeding $750 billion, averaged over the previous calendar year. Currently, only Bitcoin meets this requirement.
Changes to the Bill
An amendment to the bill eliminated a previous stipulation that the assets must be held by a qualified custodian or through an exchange-traded fund. This modification allows the state more freedom in managing its investments, including the direct holding of assets.
Montana is joining a growing number of U.S. states, including Illinois, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas, that are considering establishing Bitcoin reserves. Currently, Utah is the only state where a Bitcoin reserve bill has passed the House. Denis Porter, CEO of the Satoshi Act Fund, suggests that due to its short legislative calendar, Utah could be the first U.S. state to establish a Bitcoin reserve.
However, the likelihood of a national Bitcoin reserve being established seems to be decreasing. A poll from Polymarket with over $7 million in assets puts the chances of Donald Trump creating a Strategic Bitcoin Reserve within his first 100 days at just 10%, a significant drop from 40% in January.
