Montana Advances Bitcoin Reserve Bill, Becoming 4th US State to Move Legislation to House

Montana has taken a significant step toward potentially incorporating Bitcoin and other cryptocurrencies into state reserves, as its House Business and Labor Committee passed a bill that could pave the way for these digital assets to become reserve assets. With a 12-8 vote on February 19, Montana became the fourth U.S. state to advance a Bitcoin reserve-related bill to the House.

Montana's Bill: Key Details and Legislative Progress

House Bill No. 429, which passed the committee with unanimous support from Republicans and opposition from Democrats, outlines a proposal for the state to invest in precious metals, stablecoins, and digital assets, including Bitcoin. The bill creates a special revenue account aimed at managing investments in these assets. To qualify for investment, digital assets must have an average market cap above $750 billion over the previous calendar year. As of now, Bitcoin is the only digital asset that meets this threshold.

This bill’s passage to the House marks a significant milestone in Montana’s legislative journey and places the state among a growing group of U.S. states exploring the potential of Bitcoin reserves. Only Utah, Arizona, and Oklahoma have seen similar legislation advance to the House at the state level.

Amendments and Potential Impact

The bill was amended to remove the requirement that funds be held by a qualified custodian or through an exchange-traded fund (ETF), a move that could simplify the process for the state to invest in Bitcoin and other digital assets.

If the bill is passed by the House and signed into law, it would take effect on July 1, 2025. By July 15, the state treasurer would be authorized to move up to $50 million into a special account designed for investments in precious metals, stablecoins, and digital assets. This could mark a significant moment for the state’s financial strategy and its engagement with the growing digital asset sector.

A Growing Trend Across the U.S.

Montana’s Bitcoin reserve bill is part of a broader trend, with several other U.S. states introducing similar legislation. States such as Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas have all put forward bills to explore Bitcoin reserves or cryptocurrency investments in some form. However, Utah stands out as the most advanced in the process. The state’s Bitcoin reserve bill has already passed through the House, and many observers, including Satoshi Action Fund CEO Dennis Porter, believe Utah could be the first state to formally adopt a Bitcoin reserve.

Porter pointed to Utah’s shorter legislative window and political momentum as key factors that could propel the state to the forefront of Bitcoin reserve adoption.

Federal Efforts to Legalize Bitcoin Reserves

While states like Montana and Utah move forward with their respective bills, the conversation about Bitcoin reserves is also happening at the federal level. U.S. Senator Cynthia Lummis continues to push for a Bitcoin reserve bill at the national level, reflecting growing interest in digital assets within both state and federal legislative circles.

Conclusion: A Step Toward Cryptocurrency Integration in State Finances

Montana’s advancement of House Bill No. 429 signals a growing momentum across the United States in exploring how Bitcoin and other cryptocurrencies can play a role in state financial systems. As the bill moves to the House, all eyes will be on the legislative process in Montana, as well as in other states like Utah, to see how Bitcoin reserve strategies evolve and potentially pave the way for broader cryptocurrency adoption in public finance.