Montana state lawmakers have voted against a proposed bill that would have allowed the state government to invest in Bitcoin and other high-market-cap cryptocurrencies using taxpayer funds.
The bill, which aimed to permit investment in digital assets and precious metals with market capitalizations exceeding $750 billion, was defeated in the Montana House of Representatives with 59 votes against and 41 in favor.
Critics of the proposal expressed strong concerns about using public money for cryptocurrency investments. Several lawmakers characterized the move as risky speculation with taxpayer dollars, with one representative explicitly calling it "reckless management of taxpayers' money."
Supporters of the bill, including House Representative Lee Deming, argued that the state has an obligation to pursue maximum returns on public funds. Deming defended the proposal, stating that a Bitcoin reserve could have helped achieve higher yields for Montana's treasury.
The bill's defeat comes amid ongoing debates about cryptocurrency adoption by state governments and institutions. The rejection reflects broader concerns about the volatility and regulatory uncertainty surrounding digital assets as government investment vehicles.
The decision by Montana lawmakers effectively closes the door on what would have been a pioneering move for state-level cryptocurrency adoption in the United States.