Montana House Rejects Bitcoin Reserve Bill Amid Taxpayer Investment Concerns

The Montana House of Representatives voted against a proposal to establish a Strategic Bitcoin Reserve (SBR) during its second reading, with a tally of 59-41.

The rejection of the initiative was attributed to concerns about the potential increase in speculation with taxpayer funds by the state’s investment board.

Lawmakers in favor of the bill pointed out the need to maximize the income of the structure, highlighting the significant amount of money that remains “in the bank.”

The proposed legislation included the creation of a special income account for investments in precious metals, stablecoins, and digital assets, which have surpassed a market cap of $750 billion over the past year. Only digital gold meets this criterion.

Additionally, two other states rejected local bills concerning Bitcoin reserves. In North Dakota, the bill HB 1184, aimed at investing government funds in the leading cryptocurrency, was voted down with a margin of 57 to 32.

In Wyoming, seven out of nine representatives opposed the proposed bill HB 0201, which would allow the state treasury to allocate public funds for the purchase of digital gold.

Currently, representatives from 24 U.S. states have expressed intentions to launch an SBR in some capacity, with 20 bills still active in their respective agendas.

Utah has made the most progress, as the Senate Revenue and Taxation Committee approved the relevant document on February 20. The bill will now undergo second and third readings before the final Senate vote.

In February, Dennis Porter, CEO of the Satoshi Action Fund, identified Utah as the first contender for the launch of an SBR.

The team at VanEck estimated that the passage of such legislation could generate additional demand for Bitcoin amounting to 242,787 BTC (approximately $23.5 billion). This evaluation is considered conservative, as it does not factor in potential investments from pension funds.

In January, U.S. President Donald Trump announced the formation of a targeted group focused on digital assets, led by special advisor for AI and cryptocurrencies David Sacks.

One of the group’s objectives is to assess the feasibility of implementing an SBR. In a recent interview, a representative confirmed that they are “exploring” the topic.

MARA Holdings, a major publicly traded mining company, has joined the lobbying efforts to establish Bitcoin reserves at the federal level across all 50 states.

In December, VanEck projected that the introduction of an SBR could help the U.S. reduce its national debt by 35% by 2050. They anticipate that by 2049, the value of digital gold could rise to $42.3 million, demonstrating a compound annual growth rate (CAGR) of 25%.

Strategy founder Michael Saylor estimated the potential impact of an SBR for the U.S. at $81 trillion.

It is noteworthy that a $1 billion purchase of Bitcoin for the national reserve could increase the asset’s market cap by $20 billion, according to Sygnum’s calculations.

Earlier, analyst Thomas Farrier predicted that Bitcoin prices could surge by $50,000 per minute once U.S. authorities confirm the establishment of the SBR.