Montana Lawmakers Vote Against Bitcoin Reserve Proposal

Montana's House recently voted down House Bill 429, which aimed to classify Bitcoin (BTC) as a state asset. This decision was made during a session where the bill was ultimately rejected with a vote tally of 41-59.

This particular proposal had previously gained traction in the Business and Labor Committee, which endorsed it with a vote of 12-8 the week before. However, its momentum faltered on the House floor.

Details of the Proposed Bill

House Bill 429 sought to not only include Bitcoin as a viable state asset but also included plans for investments in precious metals and stablecoins. Bitcoin specifically met the criteria set by the bill, which required a $750 billion market capitalization.

Advocates for the bill, such as Representative Curtis Schomer, described it as vital for enhancing the state treasury. He argued that diversification of state reserves is critical, particularly in light of rising inflation and shifting political landscapes at the federal level.

“The dollar is not as strong as we think, and we should not be putting all of our eggs in one basket,” Schomer stated.

Schomer further argued that precious metals have historically provided a hedge against economic instability, while Bitcoin could represent significant long-term growth prospects.

“Montana will have more control over its economic development and not be susceptible to federal political turmoil,” he added.

Despite these arguments, the proposal experienced considerable opposition, resulting in its rejection by a largely divided legislative body, where even some Republicans joined Democrats against it.

“HB 429 failed in the House, largely due to fiscal conservative opposition,” noted Bitcoin Laws in a post on X (previously known as Twitter).

Opponents, particularly from the fiscal conservative faction, expressed concerns about the potential risks of investing taxpayer money into Bitcoin, describing it as speculative.

“It’s still taxpayer money, and we’re responsible for it, and we need to protect it,” stated State Representative Steven Kelly.

Supporters of the bill contended that taking calculated risks can be essential for growing state assets, especially against the threat of inflation. They argued that not investing in modern assets like Bitcoin poses a greater risk to taxpayers in the long run.

Attempts to amend the funding source for the bill, proposing to use interest from the American Rescue Plan Act (ARPA) rather than general funds, raised legal questions, further diminishing support.

The failure of HB 429 means that Montana joins states like Wyoming, North Dakota, Mississippi, and Pennsylvania in rejecting similar Bitcoin-focused legislation. Meanwhile, around 20 additional states are still contemplating their proposals.