TLDR
- Montana’s House of Representatives voted 41-59 against House Bill 429, which would have allowed up to $50 million in state funds to be invested in cryptocurrencies and precious metals
- Montana joins North Dakota, Wyoming, and Pennsylvania in rejecting Bitcoin reserve proposals, while 19 other states still have pending legislation
- Arizona’s Senate Finance Committee advanced a bill allowing up to 10% of public funds to be invested in crypto, now heading to the Senate Rules Committee
- Utah’s Blockchain and Digital Innovation Amendments bill, allowing 5% allocation to digital assets, is making progress through legislative channels
- Texas is considering two separate bills: one for 1% general revenue fund allocation to Bitcoin and another focused on Bitcoin donations and payments
Montana’s House of Representatives has rejected a bill that would have allowed the state to invest public funds in Bitcoin and other digital assets. The decision, made on February 22, 2025, marks the latest development in a growing nationwide debate over state-level Bitcoin reserve initiatives.
House Bill 429, introduced by Representative Curtis Schomer, failed to pass with a vote of 41-59. The proposed legislation would have created a special revenue account permitting investments of up to $50 million in cryptocurrencies, stablecoins, and precious metals.
The bill specified that eligible digital assets must maintain an average market capitalization above $750 billion over the previous calendar year. Currently, Bitcoin is the only cryptocurrency meeting this criterion, with a market cap of $1.8 trillion.
During the House Floor Session, several lawmakers expressed concerns about the risks associated with cryptocurrency investments. Representative Steven Kelly emphasized the responsibility to protect taxpayer money, while Representative Bill Mercer opposed giving the Montana Board of Investments discretion to invest in cryptocurrencies and non-fungible tokens.
Some representatives supported the bill, arguing it could benefit taxpayers. Representative Lee Demming advocated for maximizing returns on taxpayer funds, while Representative Steve Fitzpatrick pointed out that Montana’s investment board has substantial bank deposits that could potentially generate better returns.
The bill’s sponsor, Curtis Schomer, defended the proposal by highlighting the declining purchasing power of traditional bond investments. However, these arguments failed to convince the majority of lawmakers, who viewed the investment strategy as too speculative.
States Split on Bitcoin Reserve Plans
Montana now joins North Dakota, Wyoming, and Pennsylvania among states that have rejected Bitcoin reserve proposals. However, the movement to integrate cryptocurrencies into public finance continues to gain traction elsewhere.
According to Bitcoin Reserve Tracker data, approximately 19 state proposals remain under consideration. Arizona’s Senate Finance Committee has advanced legislation that would allow up to 10% of public funds, including pension systems, to be invested in cryptocurrency. The bill is now proceeding to the Senate Rules Committee.
Utah has made particular progress with its Blockchain and Digital Innovation Amendments bill, which would permit the state treasurer to allocate up to 5% of public funds to digital assets. The bill has cleared several legislative hurdles and awaits final votes.
Texas is pursuing a two-pronged approach with separate bills. One proposal would allow up to 1% of the general revenue fund to be invested in Bitcoin, while another focuses on facilitating Bitcoin donations and cryptocurrency payment conversions.
The legislative landscape extends beyond these states. Kentucky, Maryland, Oklahoma, New Hampshire, and Illinois are among those with pending Bitcoin reserve proposals. In total, 24 states have introduced related legislation, with 20 bills still active.
The trend isn’t limited to the United States. Countries including Switzerland, Brazil, Japan, and Russia are exploring the possibility of incorporating Bitcoin into their national reserve strategies.
Before its rejection, Montana’s House Bill 429 had shown promise in earlier stages, passing the business and labor committee with a 12-8 vote on February 19. The vote had split along party lines, with Republicans supporting and Democrats opposing the measure.
For Montana, the path to establishing a Bitcoin reserve would now require introducing new legislation in a future session. The current bill is effectively terminated following the House vote.
The varying reception to Bitcoin reserve proposals across different states reflects the complex considerations involved in public fund management and emerging digital assets. While some jurisdictions embrace the potential for higher returns, others prioritize traditional investment approaches.
