TL;DR
- The Montana House of Representatives approved Bill HB 429 with a 12-8 vote, promoting the use of Bitcoin and other digital assets as state reserves.
- The measure would allow the state to invest up to $50 million in Bitcoin, stablecoins, and precious metals starting July 1.
- Montana joins other states like Utah, Arizona, and Oklahoma in the race to integrate cryptocurrencies into public finances, while the debate over their viability grows at the federal level.
The state of Montana has taken a historic step in adopting Bitcoin as part of its reserve assets following the approval of Bill HB 429 by the House Business and Labor Committee. With a 12-8 vote, Republican representatives unanimously supported the initiative, while Democratic opposition voted against it. Now, the proposal will move to the House floor for final discussion.
The bill establishes a special fund dedicated to investing in Bitcoin, stablecoins, and precious metals, with the condition that digital assets must have an average market capitalization exceeding $750 billion over the past year. Currently, only Bitcoin meets this criterion.
The Impact of HB 429 on Montana’s Financial Future
If the legislation is approved, the state treasurer will be able to allocate up to $50 million to the fund starting July 1. This significant move would place Montana among the pioneering states integrating cryptocurrencies into public finances, joining similar initiatives in Utah, Arizona, and Oklahoma. Unlike other attempts, Montana’s bill removed the requirement to hold funds in qualified custody or through an ETF, providing greater flexibility in fund management and investment strategies.
The initiative also reflects a growing national trend. Recently, West Virginia Senator Chris Rose proposed the Inflation Protection Act of 2025, which would allow his state to allocate part of its reserves to Bitcoin and precious metals. Additionally, former President Donald Trump commissioned a study in January on the feasibility of a federally-backed digital asset reserve fund, which could accelerate cryptocurrency adoption in public administration.
MicroStrategy and Growing Institutional Support for Bitcoin
At the same time, the crypto ecosystem continues to gain traction among institutional investors. MicroStrategy, now renamed Strategy, announced a $2 billion fundraising through 0% interest convertible notes to expand its Bitcoin holdings. In total, a dozen U.S. states have invested in the company’s stock, with pension funds and treasuries accumulating positions worth $330 million.
The growing state and institutional support suggest that Bitcoin is solidifying as a serious alternative within the traditional financial system. It may only be a matter of time before more governments adopt the digital asset as part of their official reserves.
