Montana lawmakers have turned down House Bill 429, which proposed the state's acquisition of Bitcoin (BTC) as a state asset.
The bill, known as the Montana Strategic Bitcoin Reserve Bill, gained momentum when it made its way through the Business and Labor Committee with a 12-8 vote last week.
House Bill 429 encompassed provisions for investment in precious metals and stablecoins as well. Yet, Bitcoin stood out as the only digital asset meeting the required $750 billion market cap.
Representative Curtis Schomer hailed it as a crucial bill for the state treasury, stressing the importance of diversifying state reserves in light of inflation concerns and shifts in federal politics.
Highlighting the historical reliability of precious metals as a hedge against economic uncertainty, Schomer promoted digital assets as contemporary investments with substantial long-term growth potential, emphasizing the exponential returns they could yield.
Schomer envisioned increased control over Montana’s economic progress and resilience to federal political upheavals through this bill.
Despite the convincing arguments put forth, the bill faced defeat in a vote of 41-59, which saw a divided stance among legislators. Notably, numerous Republicans stood alongside Democrats in opposition.
The rejection of HB 429 sparked conversations within the fiscal conservative community, with contrasting views on the prudence of utilizing taxpayer funds for Bitcoin ventures. While some decried the risks and perceived speculation involved, others championed calculated risks to fortify state assets against the looming threat of inflation.
Regarding the financial backing of the bill, an amendment proposing funding with interest from the American Rescue Plan Act (ARPA) rather than general funds faced legal uncertainties, contributing to the bill's downfall.
Montana now joins the ranks of states such as Wyoming, North Dakota, Mississippi, and Pennsylvania, where comparable Bitcoin-related legislation has faced similar hurdles. Concurrently, 20 other states are deliberating on analogous proposals, navigating the complex landscape of cryptocurrency integration in governmental assets.