Montana House Committee Advances Bill for Bitcoin and Digital Asset Investments

Helena, MT – The House Business and Labor Committee in Montana has taken a significant step towards potentially establishing a state-sanctioned reserve for investments in Bitcoin, precious metals, and stablecoins. This movement came to a notable milestone when House Bill 429, introduced by Representative Curtis Schomer, advanced with a 12-8 vote in committee on February 19, 2023. ## Legislative Journey

House Bill 429 first appeared on the legislative floor on February 7 and has since cleared its first major hurdle despite facing unified opposition from Democratic committee members. The support from Republican legislators proved pivotal, allowing the bill to move forward in the legislative process.

The next phase of this legislative initiative will see the bill put to a vote in the full Montana House. Should it receive approval there, it will progress to the state Senate for further discussion and eventual approval. Upon completing these steps, the bill would require the governor’s signature to become law.

Proposed Framework for Investment

If enacted, House Bill 429 would lead to the creation of a special revenue account dedicated to investing in a range of digital assets, alongside precious metals and stablecoins. This account would be part of a broader strategy aimed at enhancing Montana’s financial reserves through diversified investments.

The bill outlines that the state treasurer would have the authority to transfer up to $50 million from the state’s general fund into this innovative account by July 15, 2025. Management of these funds would fall under the Montana Board of Investments, with the aim of focusing on assets classified as suitable according to the bill’s specifications.

The legislation explicitly defines digital assets as virtual currencies, cryptocurrencies, stablecoins, and other blockchain-based assets that carry economic or proprietary rights. Importantly, for a digital asset to qualify for investment under this bill, it must possess a market capitalization exceeding $750 billion, based on an average from the preceding calendar year—a threshold that currently applies only to Bitcoin.

Changes to Investment Management

An important amendment to the bill altered previous stipulations regarding asset management. The initial requirement that assets be held by a qualified custodian or through an exchange-traded fund has been eliminated. This change allows for a broader and more flexible approach in managing the state’s investments, facilitating more direct holdings of these assets.

Growing Trend Among U.S. States

Montana is part of a larger national trend as various U.S. states consider or have introduced similar legislation aimed at establishing Bitcoin and digital asset reserves. States such as Illinois, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas are also exploring these investment opportunities. Notably, Utah stands out as the only state where a Bitcoin reserve bill has successfully cleared the House at this time, leading to speculation that it may become the first state to formalize a Bitcoin reserve due to its expedited legislative process.

In contrast, the prospect of establishing a Bitcoin reserve on a national scale appears to be diminishing. A recent Polymarket poll indicated that the likelihood of former President Donald Trump initiating a Strategic Bitcoin Reserve within his first 100 days has decreased significantly, dropping from 40% in January to just 10% as of now.

As Montana continues to navigate the legislative approvals for House Bill 429, its potential impacts on the state’s financial strategy and innovation in digital asset management remain closely watched by stakeholders both locally and nationally.