The state legislature rejects the proposal to invest in digital assets with 59 votes against, citing concerns from Republican lawmakers about the risks to taxpayer money.
On February 22, the Montana House of Representatives voted 41-59 to reject a bill that would have allowed Bitcoin to be included among the state’s assets. The proposal, known as House Bill No. 429, aimed to create a special fund for investments in precious metals, stablecoins, and digital assets with an average market capitalization exceeding $750 billion over the past year—a criterion currently met only by Bitcoin.
The rejection was primarily due to concerns over the management of public funds. During the session, Representative Steven Kelly stated:
“It’s still taxpayer money, and we’re responsible for it, and we need to protect it. These types of investments are way too risky.”
Representative Bill Mercer also voiced his opposition, saying:
“I did not come here to give the Board of Investment discretion to invest in non-fungible tokens and cryptocurrencies.”
However, some lawmakers supported the measure. Representative Lee Demming argued that the state should seek to maximize returns for taxpayers, while Curtis Schomer, the bill’s sponsor, warned that “the only real risk is not passing this bill,” highlighting that the investment board will continue to lose purchasing power by sticking to bonds. Representative Steve Fitzpatrick added that the state’s investment board “has a lot of money sitting in the bank” that could be put to better use by investing in precious metals and digital assets.
The rejection comes just days after Montana’s Commerce and Labor Committee approved the bill with a 12-8 vote. With this decision, the initiative is effectively shelved, and any future proposal regarding Bitcoin as a state reserve will need to be reintroduced in the legislature.
