Although it once had the chance to be one of the pioneering states in recognizing Bitcoin as a reserve asset, on February 23, the Montana House rejected this bill by 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, originally proposed establishing 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 risks:
Lawmaker Steven Kelly believes investing in Bitcoin is too risky and not aligned with budget management responsibilities.
Lawmaker Bill Mercer is concerned about allowing the Montana Investment Board to speculate in crypto and NFTs.
Some other lawmakers called this an unnecessary risky move.
Montana Falls Behind, But Other States Move Forward
Although Montana rejected $BTC , the trend of legalizing Bitcoin continues to spread across the United States. States like 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 proposed that the U.S. buy 1 million BTC within the next 5 years, even calling for the government to sell gold to buy Bitcoin.
However, this effort has yet to achieve significant progress.
Conclusion
Montana's rejection of the Bitcoin reserve bill shows that Bitcoin has yet to fully convince lawmakers in some states. However, with Utah leading the way, along with many other states considering legalization, the trend of recognizing Bitcoin in the U.S. is becoming increasingly evident. 🚀