Montana lawmakers have rejected House Bill 429 during the House floor session. The bill would have allowed the state to hold Bitcoin (BTC) as a state asset.

This comes after the bill advanced through the Business and Labor Committee with a 12-8 vote last week.

House Bill 429 also included provisions for investing in precious metals and stablecoins. Meanwhile, Bitcoin was the only digital asset that met the $750 billion market cap requirement.

Representative Curtis Schomer called it “a precious bill for the treasury state.” He emphasized the need to diversify state reserves amid concerns over inflation and federal political shifts.

“The dollar is not as strong as we think, and we should not be putting all of our eggs in one basket,” he said.

Schomer highlighted precious metals as a historical hedge against economic uncertainty and digital assets as a modern investment with long-term growth potential. He stressed that digital assets have the potential for exponential returns.

“Montana will have more control over its economic development and not be susceptible to federal political turmoil,” Schomer added.

He also noted that the bill move would help drive the state’s economic growth.

Nonetheless, the bill was rejected in a 41-59 vote. The proposal faced a largely partisan split. However, many Republicans joined Democrats in opposition.

“HB 429 failed in the House, largely due to fiscal conservative opposition,” Bitcoin Laws posted on X (formerly Twitter).

According to Bitcoin Laws, fiscal conservatives were divided on Bitcoin-related legislation. Some argue that using taxpayer money for Bitcoin investments is too risky and amounts to speculation.

“It’s still taxpayer money, and we’re responsible for it, and we need to protect it,” State Representative Steven Kelly said.

Meanwhile, proponents countered that calculated risks are necessary to grow state assets, particularly amid inflation. They described it as a greater threat to taxpayers. In addition, they framed Bitcoin as a tool to preserve and potentially increase the value of state reserves over time.

Despite an amendment attempt to fund the bill with American Rescue Plan Act (ARPA) interest instead of general funds, lawmakers questioned the legality of such a move, further undermining support. 

With the rejection of HB 429, Montana joined Wyoming, North Dakota, Mississippi, and Pennsylvania, where similar Bitcoin-related legislation has failed. Meanwhile, 20 other states have active proposals under consideration.

The post Montana Lawmakers Reject Bitcoin Reserve Bill in 41-59 Vote appeared first on BeInCrypto.

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