Montana’s House of Representatives has struck down a proposal that would have positioned Bitcoin as a state reserve asset, with lawmakers voting 41-59 against House Bill No. 429.

The decision came after heated debate, with many expressing unease over the potential for the state’s investment board to gamble with taxpayer funds in the volatile world of cryptocurrencies.

The bill, which garnered significant Republican opposition despite party support in earlier stages, aimed to establish a special revenue account for investing in precious metals, stablecoins, and digital assets boasting an average market capitalization exceeding $750 billion over the past year—a threshold currently met only by Bitcoin.

However, critics argued that such speculative ventures posed too great a threat to public funds.

“We’re talking about taxpayer money here,” Representative Steven Kelly emphasized during the House Floor Session.

“It’s our duty to safeguard it, and these kinds of investments are far too unpredictable.”

Kelly’s sentiment echoed broader concerns about exposing Montana’s finances to the wild swings often seen in cryptocurrency markets.

Representative Bill Mercer took issue with the bill’s provision granting the Montana Board of Investments broad discretion to dive into cryptocurrencies and even non-fungible tokens (NFTs). “I didn’t come here to play financial roulette,” Mercer said, while another colleague added, “This reeks of speculation.”

Their remarks underscored a deep-seated wariness of straying from traditional, conservative investment strategies.

Not all lawmakers shared this caution. Representative Lee Demming championed the bill as a means to maximize returns on idle taxpayer dollars.

“If we’re holding onto this money, we owe it to Montanans to make it work as hard as possible—either that, or hand it back to them. I’m supporting this bill because it’s a step toward delivering real value.”

The bill’s sponsor, Representative Curtis Schomer, went further, framing the rejection as a missed opportunity. “The real risk lies in letting this bill die,” Schomer warned. He pointed out that sticking to low-yield bonds erodes the state’s purchasing power over time, suggesting that Bitcoin and similar assets could counteract inflation’s bite.

Representative Steve Fitzpatrick noted that the Montana Board of Investments oversees “a substantial amount of cash just sitting in the bank.” He argued that deploying those funds into precious metals and digital assets could generate returns to benefit taxpayers—potentially paving the way for tax cuts and fiscal relief.

“This is about putting money back into people’s pockets.”

Despite some bipartisan intrigue, with a handful of lawmakers open to refining the proposal through amendments, the bill couldn’t overcome its detractors. Its defeat marks the end of House Bill No. 429’s journey in this session, though the concept could resurface in future legislative efforts.

The bill’s path had shown promise just days earlier, when Montana’s Business and Labor Committee approved it on Feb. 19 in a 12-8 vote split cleanly along party lines—Republicans in favor, Democrats against. That momentum, however, fizzled on the House floor.

READ MORE: Illinois introduces bill to hold Bitcoin as a state asset

Montana’s flirtation with Bitcoin as a reserve asset mirrors a broader trend across the United States. According to Bitcoin Laws, 24 states—including Arizona, Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, and Texas—have introduced similar legislation. Of those, 20 still have active bills under consideration.

Utah stands out as a frontrunner, having advanced its HB230, dubbed the “Blockchain and Digital Innovation Amendments,” through the Senate Revenue and Taxation Committee on Feb. 20. That bill now awaits second and third readings before a final Senate vote, positioning Utah as the state closest to integrating Bitcoin into its financial framework.

For now, Montana’s lawmakers have slammed the brakes on joining this movement, opting for fiscal caution over the allure of digital gold. Any renewed push to make Bitcoin a state reserve will require a fresh start in the next legislative session.

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