Montana’s Bitcoin reserve bill has failed to clear the House of Representatives after lawmakers voted against it during the latest floor session.
House Bill 429, which sought to allow the state to invest in Bitcoin, precious metals, and stablecoins, was struck down in a 41-59 vote. Lawmakers raised concerns over the risks of using taxpayer money for such investments, ultimately deciding the potential volatility outweighed any possible returns.
The legislation passed Montana’s Business and Labor Committee on Feb. 19 with a 12-8 vote.
An amendment to fund the bill with interest earned from the American Rescue Plan Act was also proposed but failed to sway the majority.
While most Republicans backed the bill, with 40 voting in favor, 18 opposed it. The opposition was primarily driven by Democrats, who unanimously voted against the measure.
According to Representative Lee Demming, the bill would have helped the state get better returns on taxpayer money. During the Feb. 22 House Floor session, he argued that if the state was going to hold onto taxpayer money, it had an obligation to ensure the highest possible return on investment.
“Either that or you give it right back to them,” Demming said, explaining his support for the bill.
Montana Representative Steve Fitzpatrick agreed, adding that the state had a surplus of funds “in the bank,” which could be invested in assets like Bitcoin, precious metals, and stablecoins to generate better returns.
However, those opposing House Bill 429, like State Representative Steven Kelly, argued that the bill posed too much risk for taxpayers. Kelly pointed out that lawmakers were responsible for protecting public funds and that investments in volatile assets like cryptocurrencies were “way too risky” for state money.
Another opposer called it a “foolhardy way to think about taxpayer dollars.”
Montana joins Wyoming, North Dakota, and Pennsylvania as the only four U.S. states that have rejected similar bills, according to data from Bitcoin Reserve Monitor.
As of Feb. 24, 19 other states are reviewing crypto reserve legislation, with Utah and Arizona leading—both having advanced their bills to their respective Senate floors for further debate.
