tl;dr
Montana lawmakers rejected House Bill 429, which aimed to allow the state to hold Bitcoin as a state asset. The bill also included provisions for investing in precious metals and stablecoins. Despite arguments for diversifying state reserves and addressing inflation concerns, the bill was rejected i...
Montana lawmakers rejected House Bill 429, which aimed to allow the state to hold Bitcoin as a state asset. The bill also included provisions for investing in precious metals and stablecoins. Despite arguments for diversifying state reserves and addressing inflation concerns, the bill was rejected in a 41-59 vote, with fiscal conservative opposition and concerns about using taxpayer money for Bitcoin investments. The proposal faced a largely partisan split, with Republicans and Democrats opposing. Additionally, an attempt to fund the bill with American Rescue Plan Act interest was questioned for its legality. This rejection aligns Montana with other states where similar Bitcoin-related legislation has failed, while 20 other states have active proposals under consideration.
Representative Curtis Schomer emphasized the need to diversify state reserves amid concerns over inflation and federal political shifts, citing the dollar's weakening strength and advocating for spreading financial assets. However, the bill was ultimately rejected in a 41-59 vote, facing division among fiscal conservatives and encountering concerns about the use of taxpayer money for speculative investments. Proponents argued that calculated risks were necessary to grow state assets, particularly in the face of inflation, framing Bitcoin as a tool to preserve and potentially increase the value of state reserves over time. Despite attempts to amend the funding source and support the bill, its rejection reflects a broader trend seen in other states, where similar Bitcoin-related legislation has also failed.
With the rejection of HB 429, Montana aligns with other states such as Wyoming, North Dakota, Mississippi, and Pennsylvania, where similar Bitcoin-related legislation has faced setbacks. However, 20 other states continue to consider active proposals related to cryptocurrencies and state investments.