• Montana House has rejected the Bitcoin reserve bill.
• The Bitcoin reserve bill aimed for $50M in crypto.
• The house cited risk to taxpayer funds.

On February 22, 2025, Montana’s House of Representatives decisively voted down House Bill No. 429, a proposal that aimed to establish Bitcoin (BTC) as a state reserve asset.

The 41-59 vote marked a significant setback for advocates of integrating cryptocurrency into Montana’s financial strategy, highlighting a deep divide over the role of digital assets in public finance.

Introduced by Representative Curtis Schomer earlier in February, the bill sought to diversify the state’s investment portfolio by creating a special revenue account. This account would have allowed the state treasurer to allocate up to $50 million for investments in stablecoins, precious metals, and cryptocurrencies with a market capitalization exceeding $750 billion over the past year, a threshold currently met only by Bitcoin.

Supporters argued that such a move could yield higher returns than traditional bond investments, positioning Montana as a forward-thinking player in the evolving financial landscape.

Montana house representatives wary of risks involved

Despite clearing the House Business and Labor Committee on February 19 with a 12-8 vote, backed by Republicans and opposed by Democrats, the bill faced stiff resistance during its second reading in the House.

Fiscal conservatives, including many Republicans, voiced concerns over the speculative nature of Bitcoin, emphasizing the state’s duty to protect taxpayer money.

Representative Steven Kelly captured this sentiment during the House Floor Session, stating, “It’s still taxpayer money, and we’re responsible for it. We need to protect it. These types of investments are way too risky.”

Representative Jane Gillette echoed these doubts, pointing out that the bill lacked clear guidelines on how the funds would be managed, while Representative Bill Mercer warned that Bitcoin’s history of dramatic price swings made it an imprudent choice for public funds.

On the other side, advocates like Representative Lee Demming argued that embracing digital assets could safeguard Montana’s reserves against inflation and bolster long-term financial growth, a perspective shared by Bitcoin proponents nationwide.

The rejection of HB 429 effectively kills the proposal for now, requiring any future efforts to start anew in Montana’s legislature.

US states push for Bitcoin reserves

Montana’s decision stands in contrast to a growing trend among US states exploring Bitcoin as a reserve asset.

Approximately 24 states, including Utah, Arizona, Oklahoma, Texas, and Ohio, have introduced similar legislation, with Utah’s HB230 making the most progress by allowing up to 5% of public funds to be invested in digital assets.

Nationally and globally, the push for Bitcoin reserves is gaining traction, with countries like Switzerland, Brazil, Japan, and Russia also weighing the cryptocurrency’s potential as a strategic asset.

Dennis Porter, CEO of the Satoshi Action Fund, which collaborated with Montana legislators like Schomer and Senator Daniel Zolnikov, expressed disappointment with Montana’s move but remained optimistic about the broader movement. He noted that Bitcoin’s decentralized structure and limited supply make it an attractive hedge against economic uncertainty.

• The SEC has received six XRP ETF applications over the last several weeks as interest in traditional crypto investment vehicles continues rising.
• Coinshares sent a proposal for XRP and Litecoin ETFs while Grayscale sent one for XRP amid several proposals for Solana ETFs.

The SEC has received no less than six applications for XRP exchange-traded funds from major issuers like Canary Capital, Grayscale, Bitwise, WisdomTree, 21Shares, and Coinshares.

The latest application, Grayscale, began the 21-day comment period on Friday where members of the public can submit feedback on the proposed ETF.

While this happens, five Solana ETF applications from 21Shares, Bitwise, Grayscale, VanEck, and Canary await a decision.

The rise of interest in ETFs

The recent swarm of ETF applications is emblematic of a shift in the regulatory landscape to a more friendly environment. This shift began at the twilight of Gary Gensler’s tenure with the approval of the Bitcoin and Ethereum ETFs.

Now that Mark Uyeda, a pro-crypto official, is in office, combined with the most pro-crypto Congress the US has ever seen, the regulatory landscape is expected to be friendlier. Furthermore, Ripple Labs’ win against Gensler’s SEC has also placed it in a favourable growth position.

President Trump signed an executive order to create a sovereign wealth fund that will include cryptocurrencies. While Bitcoin is expected to be on the list, recent developments may place XRP in the fund as well.

In January, Trump met with Brad Garlinghouse, CEO of Ripple, who is pushing for the sovereign wealth fund to contain more than one cryptocurrency, ideally XRP as well.

Some thoughts on maximalism… let me say this as clearly as I can – the crypto industry has a real shot, here and now, to achieve the many goals we have in common, IF we work together instead of tearing each other down. This is not, and never will be, a zero-sum game.

• I own…

— Brad Garlinghouse (@bgarlinghouse) January 27, 2025

An XRP ETF approval could cement the crypto as a candidate for the reserve.

Ripple is the third largest crypto by market cap and trades at $2.48 as of publishing.

Utah continues to make strides in its quest to create a strategic Bitcoin (BTC) reserve, as the state’s Blockchain and Digital Innovation Amendments bill – also known as H.B. 230 – cleared its first reading in the Senate yesterday, and has now moved to the Senate Revenue and Taxation Committee for further consideration.

Utah Bitcoin Reserve Bill Passes First Reading In Senate

In a major development that could strengthen Bitcoin’s position as a mainstream store of value, Utah’s H.B. 230 bill has successfully cleared its first reading in the state Senate. According to the official bill tracker, the proposal has now advanced to the Senate Revenue and Taxation Committee, where it will undergo further review before potentially moving to the next stage of the legislative process.

To recall, Utah Representative Jordan Teuscher introduced H.B. 230 on January 21. The bill passed the House in the same month with an 8-1 vote before proceeding to the Senate for its first reading on February 7. 

If enacted, the bill would authorize the state treasurer to allocate up to 5% of public funds for investment in “qualifying digital assets.” According to the bill’s criteria, these assets must have maintained a market capitalization of more than $500 billion over the past 12 months and must not be a stablecoin.

Under these strict requirements, Bitcoin is currently the only asset that qualifies. The leading cryptocurrency commands a total market cap of over $1.9 trillion, whereas Ethereum (ETH), the second-largest digital asset by market capitalization, stands at approximately $327 billion, falling short of the proposed $500 billion threshold. 

If the bill is enacted, it is expected to go into effect on May 7. Commenting on the legislation’s development, Teuscher wrote in a recent X post:

Thrilled to join with @Dennis_Porter_ to announce HB230 which will allow the state to invest in digital assets. While Utah is the 11th state to introduce similar legislation, we will be the first to pass it. Utah continues to lead the nation in blockchain and digital innovation!

Various States Working Toward BTC Adoption

Teuscher’s statement reflects the broader movement among several US states to incorporate Bitcoin into their financial strategies. Utah is not alone in considering Bitcoin reserves, as more than 25 different states have introduced similar legislative measures aimed at creating a strategic Bitcoin reserve.

In May 2024, New Hampshire State Representative Keith Ammon proposed diversifying the state’s financial reserves by investing in Bitcoin exchange-traded funds (ETFs). Later in October, Florida’s Chief Financial Officer, Jimmy Patronis, urged the state’s pension fund managers to explore Bitcoin investments as part of a broader strategy to strengthen financial resilience.

Similar bills have been introduced in other states, including Alabama, Massachusetts, South Dakota, Ohio, and Oklahoma. At press time, BTC trades at $96,075, up 0.6% in the past 24 hours.

Featured Image from Unsplash.com, Charts from Bitcoinlaws and TradingView.com