A proposal to create a Bitcoin reserve fund in Montana failed during the second reading vote in the House of Representatives. The document aimed to create a special account for investments in precious metals and digital assets.
Reserve Fund Proposal
The bill, proposed by Republican Curtis Schomer, aimed to establish a special fund for investments in precious metals and digital assets with a maximum amount of $50 million. Only digital assets with a market cap of over $750 billion were eligible, effectively authorizing investments only in Bitcoin.
Reasons for Proposal Rejection
Despite passing through the Business and Labor Committee, the proposal was rejected with a vote of 59 against 41. The debate centered on the viability of such a fund to use taxpayers' money. Opponents called the proposal speculative and risky. "I am not signing on to that stuff [cryptocurrency] and I can’t imagine a majority of your constituents want you to," said Republican Bill Mercer.
Other Cryptocurrency Laws in Montana
Other proposed legislation in Montana includes laws that would prohibit testing a central bank digital currency and legalize tax payments in cryptocurrency. Another proposal protects mining rights and exempts certain tokens from state security laws. In 2023, a law was passed to prohibit discriminatory electricity rates for miners.
Montana has joined several other states in rejecting cryptocurrency reserve proposals. While some states are moving forward with crypto reserve initiatives, at a federal level, such a move is only under consideration.
