Montana Advances Bill to Allow Bitcoin and Cryptocurrencies as Reserve Assets

Montana Takes Step Toward Cryptocurrency Reserves

Montana's House Business and Labor Committee has advanced a bill that could pave the way for Bitcoin and other cryptocurrencies to be used as reserve assets. House Bill No. 429, the fourth such crypto reserve bill at the state level in the U.S., was approved in a 12-8 vote, reflecting a partisan divide, with all Republicans in favor and all Democrats opposed.

Key Provisions of the Bill

The bill proposes the creation of a special revenue account for state investments in precious metals, stablecoins, and digital assets. To qualify, these digital assets must have maintained an average market capitalization of over $750 billion in the past year—a criterion currently met only by Bitcoin. If enacted, the bill would allow the state treasurer to allocate up to $50 million into this account by July 15, with the law taking effect on July 1.

Montana Joins Growing List of States

Montana now joins states like Utah, Arizona, and Oklahoma, which have seen similar Bitcoin reserve bills progress to the House. The bill has been amended to remove requirements for funds to be managed by a qualified custodian or through an ETF, streamlining the investment process.

National Momentum for Cryptocurrency Reserves

Several other states, including Illinois, Kentucky, and Texas, have introduced legislation related to Bitcoin reserves. Utah is leading the charge, with its Bitcoin reserve bill already passed by the House. Dennis Porter, CEO of the Satoshi Action Fund, has highlighted Utah's potential to become the first state to establish a Bitcoin reserve, citing its shorter legislative window and strong political support.

Federal Advocacy for Bitcoin Reserves

At the federal level, U.S. Senator Cynthia Lummis continues to champion the passage of a Bitcoin reserve bill, signaling growing interest in cryptocurrency adoption at both state and federal levels. This legislative momentum underscores the increasing recognition of Bitcoin and other digital assets as viable store-of-value investments.