Montana is one step closer to becoming a Bitcoin-friendly state after the House Business and Labor Committee advanced a bill that seeks to authorize Bitcoin, precious metals, and stablecoins as part of its state reserves. House Bill 429, introduced by Representative Curtis Schomer, cleared its first major hurdle with a 12-8 committee vote on February 19.
Despite unified opposition from Democrats, Republican support was enough to push the bill forward. The next step is a vote in the full Montana House. If approved, it will proceed to the state Senate before requiring the governor’s signature to become law.
A New Approach to State Reserves
If passed, the bill would establish a state special revenue account to allocate up to $50 million in investments across digital assets, precious metals, and stablecoins. The Montana Board of Investments would manage these funds, ensuring compliance with the bill’s criteria.
One key provision in the bill mandates that any digital asset eligible for investment must have a market capitalization exceeding $750 billion, averaged over the previous calendar year. Currently, Bitcoin is the only cryptocurrency meeting this requirement.
An amendment to the bill removed a prior condition that digital assets must be held by a qualified custodian or an exchange-traded fund (ETF). This adjustment allows the state more flexibility in managing its digital asset investments.
Growing Interest in Bitcoin Reserves
Montana joins a growing number of U.S. states exploring Bitcoin reserves. Similar legislative efforts have emerged in Illinois, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas.
Among these states, Utah has made the most progress, with its Bitcoin reserve bill already clearing the House. According to Denis Porter, CEO of the Satoshi Act Fund, Utah could become the first U.S. state to officially establish a Bitcoin reserve due to its streamlined legislative process.
National Outlook: Fading Chances of a Federal Bitcoin Reserve
While state-level interest in Bitcoin reserves is increasing, the likelihood of a federal initiative appears to be fading. A Polymarket poll, which tracks betting odds on political and financial developments, currently places the chances of Donald Trump establishing a Strategic Bitcoin Reserve within his first 100 days at just 10%, down from 40% in January.
Montana’s HB 429 marks a significant step toward incorporating Bitcoin into state reserves. If passed, it could pave the way for broader institutional adoption of Bitcoin at the state level. With other states considering similar moves, Montana’s decision could influence future policies nationwide.
