Bitcoin reserve: Montana submits bill to House of Representatives

On Feb. 19, the Montana House of Representatives' Committee on Economy and Labor passed a bill that could potentially include Bitcoin and other cryptocurrencies in the state's currency reserves. The proposal, known as bill number 429, was passed by a vote of 12 to 8. In this, partisan differences were evident: all Republicans voted in favor, while all Democrats voted against.

The bill, the fourth of its kind to reach the U.S. House of Representatives at the state level, aims to establish a special yield account. This account could invest in precious metals, stablecoins and digital assets with an average market capitalization of more than $750 billion in the last calendar year. Currently, only Bitcoin meets this requirement.

If passed, the bill would take effect July 1 and would allow the state treasurer to transfer up to $50 million to a special account used for investments in the aforementioned asset classes until July 15.

After committee approval, the bill now goes to the entire Montana House of Representatives. This is a stage in the legislative process that so far only Utah, Arizona and Oklahoma have reached. Other states such as Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota and Texas have also introduced bills to create a Bitcoin reserve.

Utah, meanwhile, has made the most regulatory progress and is the only state to get a bill on Bitcoin reserves through the House of Representatives. Dennis Porter, CEO of the Satoshi Action Fund, considers Utah the likely first U.S. state to adopt a Bitcoin reserve, thanks in part to the state's shorter legislative calendar and current "political momentum."