Montana Bitcoin Reserve Act Rejected, 20 States Still Pending Related Laws

According to Cointelegraph, the Montana House of Representatives rejected a bill to make Bitcoin a state reserve asset last weekend with a vote of 41-59. Many lawmakers are concerned that the bill may lead to the state's investment committee using taxpayers' money for excessive speculation.

In this vote on House Bill 429, many Republican lawmakers voted against it. The bill proposes the establishment of a special income account for investing in precious metals, stablecoins, and digital assets with an average market value of over $750 billion in the past year - currently the only asset that meets this standard is Bitcoin.

Legislators' reactions

This is still taxpayers' money, we are responsible for it and must protect it, "Republican Montana Congressman Steven Kelly said at a House meeting on February 22." These types of investments are too risky

Congressman Bill Mercer also opposes granting the state investment commission the authority to invest in cryptocurrencies and NFTs, stating, "I'm not here to do these things." Another senator added, "To me, this sounds like speculation

However, Congressman Lee Demming stated that Montana should seek to maximize taxpayers' investment returns and believes that the bill can facilitate this outcome. He said, "If we want to retain taxpayers' money, I believe we have a responsibility to ensure that this money receives the highest possible return. Otherwise, the money should be returned directly to taxpayers, so I will vote in favor of this bill based on this reason

The only risk is not passing this bill, "said Curtis Schomer, the proposer of the bill. He believes that if Montana's investment committee continues to invest in bonds, it will lose purchasing power. Congressman Steve Fitzpatrick stated that the Investment Committee has a significant amount of idle funds that can be more effectively used to invest in precious metals and digital assets, bringing returns to taxpayers.

Some legislators believe that this bill has potential, but further revisions are needed.

Developments in Bitcoin Reserve Legislation in Various States

According to the website Bitcoin Laws, which tracks digital asset legislation in the United States, 24 states have proposed bills to establish Bitcoin reserves, with 20 states' bills still under review.

Utah has made the fastest legislative progress in this area. The state's "Blockchain and Digital Innovation Amendment" has been approved by the State Senate Tax Committee on February 20th and is about to undergo its second and third readings, with the Senate ultimately voting on it.