Montana Rejects Bitcoin Reserve Bill

Montana’s Bitcoin Reserve Bill Fails to Pass House of Representatives

Montana’s House Bill 429, which aimed to allow the state to invest in Bitcoin, precious metals, and stablecoins, has been rejected by the House of Representatives in a 41-59 vote. The bill’s failure comes after lawmakers expressed concerns about the risks associated with using taxpayer money for such investments.

Concerns Over Volatility and Risk

The primary concern among lawmakers was the potential volatility of investing in cryptocurrencies and other assets, which they believed outweighed any possible returns. Despite an amendment to fund the bill with interest earned from the American Rescue Plan Act, the majority of lawmakers remained unconvinced.

Party Lines and Support

The vote largely followed party lines, with most Republicans backing the bill (40 in favor) and Democrats unanimously opposing it. Representative Lee Demming, a supporter of the bill, argued that the state had an obligation to ensure the highest possible return on investment for taxpayer money.

Either that or you give it right back to them.

Demming’s sentiments were echoed by Representative Steve Fitzpatrick, who pointed out that the state had a surplus of funds that could be invested in assets like Bitcoin and precious metals to generate better returns.

Opposition and Criticism

However, opponents of the bill, such as State Representative Steven Kelly, argued that the risks associated with investing in volatile assets like cryptocurrencies were too great for state money. Kelly emphasized the responsibility of lawmakers to protect public funds.

Another opposer described the bill as a “foolhardy way to think about taxpayer dollars.”

Other States’ Stances on Crypto Reserve Legislation

Montana joins Wyoming, North Dakota, and Pennsylvania as the only four U.S. states that have rejected similar bills. Meanwhile, 19 other states are reviewing crypto reserve legislation, with Utah and Arizona leading the charge.

For more news on cryptocurrencies and finance, visit Global Crypto News.