Despite having the opportunity to become one of the pioneering states in recognizing Bitcoin as a reserve asset, on February 23, the Montana House rejected this bill with a vote of 41-59.
Bitcoin Not Accepted by Montana Due to Risk Concerns
House Bill No. 429, passed by the House Business and Labor Committee #Montana on February 19, initially proposed the establishment of a fund to invest in precious metals, stablecoins, and digital assets with a market capitalization over $750 billion. Bitcoin is the only asset that meets this criterion.
However, when put to a final vote in the House, the bill was rejected. The main reason was concerns about financial risk:
Lawmaker Steven Kelly believes investing in Bitcoin is too risky and not suitable for budget management responsibilities.
Lawmaker Bill Mercer is concerned about allowing the Montana Investment Board to speculate on crypto and NFTs.
Some other lawmakers called this an unnecessary reckless act.
Montana Falls Behind, But Other States Move Forward
Although Montana has rejected $BTC , the trend to legalize Bitcoin continues to spread across the United States. States such as Illinois, Kentucky, #Maryland , New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas are considering similar moves.
Some states have indirectly invested in crypto through ETFs, including Wisconsin, Florida, and Michigan. Notably, Utah has officially passed a Bitcoin reserve bill, becoming the first state to make significant progress in this area.
Has Bitcoin Become a Federal Reserve Asset?
Not only at the state level, Senator Cynthia Lummis is also pushing for a federal bill to include Bitcoin in the national reserve asset portfolio. She proposes that the U.S. buy 1 million BTC in the next 5 years, even calling for the government to sell gold to purchase Bitcoin.
However, this effort has not yet made significant progress.
Conclusion
Montana's rejection of the Bitcoin reserve bill shows that Bitcoin has not yet fully convinced lawmakers in some states. However, with Utah's leadership, along with many other states considering legalization, the trend towards recognizing Bitcoin in the U.S. is becoming increasingly evident. 🚀