Nikolas Sargeant
Bitcoin adoption faced a setback in Montana as House lawmakers voted down legislation proposing a state-backed digital asset reserve. The House Bill No. 429, which would have established a special revenue account for investing in digital assets and precious metals, failed to clear its second reading with a 41-59 vote.
The defeat largely stemmed from fiscal conservatives within the Republican party, who expressed serious concerns about taxpayer fund security. Representative Jane Gillette highlighted the bill's lack of clarity regarding fund allocation, while Representative Steven Kelly deemed such investments "way too risky" for public money.
Conservative Opposition Derails Digital Asset Plans
The proposed legislation, which initially gained support from Montana's House Business and Labor Committee, hit a wall during the House Floor session. Representative Bill Mercer emphasized his opposition to speculating with taxpayer funds, stating firmly that risking citizens' hard-earned money wasn't appropriate for the state.
Despite support from lawmakers like Lee Demming, who argued for maximizing taxpayer returns through innovative investments, the conservative resistance proved insurmountable. The largely partisan vote saw a significant number of Republicans break ranks to oppose the measure.
Vision of Digital Asset Reserve Falls Short
The ambitious proposal, spearheaded by Representatives Gayle Lammers and Curtis Schomer, would have authorized Montana's state treasurer to allocate $50 million toward digital assets by July 2025. The initiative aimed to invest in assets maintaining a market capitalization above $750 billion over the previous year.
While Montana's effort stalled, other states including Utah, Arizona, and Oklahoma continue exploring similar Bitcoin reserve proposals. The Satoshi Action Fund, led by CEO Dennis Porter, had actively supported the Montana initiative, working alongside state legislators to advance the "Strategic Bitcoin Reserve" policy.
