YEREVAN (CoinChapter.com) — Montana’s House of Representatives rejected House Bill No. 429 in a 41-59 vote on Feb. 22, blocking a proposal to make Bitcoin (BTC) a state reserve asset. Lawmakers raised concerns over financial risks and the potential misuse of taxpayer money.
Montana House Bill 429 Rejected in Key Vote, Failing 41-59 in Second Reading. Source: MT State LegislatureConcerns Over Bitcoin and Speculation
The bill proposed a special revenue account for investments in precious metals, stablecoins, and digital assets with a market cap over $750 billion in the last year. Bitcoin is the only digital asset that meets this requirement.
Representative Steven Kelly opposed the bill, saying taxpayer funds should be protected.
“It’s still taxpayer money, and we’re responsible for it, and we need to protect it,”
Kelly said.
“These types of investments are way too risky.”
Other lawmakers echoed these concerns. Representative Bill Mercer opposed allowing Montana’s Board of Investments to invest in cryptocurrencies and non-fungible tokens (NFTs), saying, “I did not come here to do that.” Another legislator described the bill as speculation.
Montana House Bill 429 Fails Second Reading Amid Fiscal Conservative Opposition. Source: Bitcoin LawsArguments for Bitcoin as a State Reserve Asset
Some lawmakers supported the bill, arguing that Bitcoin could offer a higher return on taxpayer funds. Representative Lee Demming said the state should maximize returns.
“If we’re going to keep the taxpayer’s money, I think we owe it to the taxpayers to get as high a return on that money that’s sitting in there, either that or you give it right back to them, so I’m going to vote on this bill for that reason.”
The bill’s sponsor, Curtis Schomer, said the state’s investment board would lose purchasing power by keeping funds in bonds instead of Bitcoin.
Montana’s Investment Board and Unused Reserves
Representative Steve Fitzpatrick said Montana’s investment board holds large reserves that could be used for Bitcoin and other digital assets.
“We can make a return to the taxpayer and ultimately that will allow us to give more money back, to cut taxes, and provide that fiscal relief that people are looking for.”
Some lawmakers saw potential in House Bill No. 429 but also suggested that amendments were needed.
Bitcoin Reserve Bills Introduced in Multiple States
Montana’s rejection followed a 12-8 vote by the Business and Labor Committee on Feb. 19, with all Republicans supporting the bill and all Democrats opposing it. The House vote ended the proposal, meaning a new Bitcoin reserve bill would need to be introduced.
At least 24 states have introduced similar bills, including Arizona, Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, and Texas. According to Bitcoin Laws, bills in 20 of these states are still active.
Utah Leads BTC Reserve Legislation in the U.S.
Notably, among U.S. states, Utah has made the most progress on a Bitcoin reserve bill. The Senate Revenue and Taxation Committee passed Utah’s HB230 ‘Blockchain and Digital Innovation Amendments’ bill on February 20, moving it to further readings before a final Senate vote.
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