Montana’s House of Representatives on Saturday voted down a bill that sought to make Bitcoin a state reserve asset and allow investment in other digital and precious metals assets exceeding a $750 billion market capitalization.Critics raised concerns about the volatility of digital assets and the potential risks associated with investing public funds in speculative markets.The bill, also known as House Bill No. 429, was rejected in a 41-59 vote due to ongoing concerns about risks associated with Bitcoin—currently the only digital asset that meets the investment criteria written in the bill’s text.No Big DealDuring the second reading, Montana’s lawmakers expressed mixed opinions on investing public funds in volatile digital assets. State Rep. Steven Kelly stressed that the proposed investments in precious metals and digital assets are “way too risky.”“It’s still taxpayer money, and we’re responsible for it, and we need to protect it,” Rep. Kelly said.Rep. Bill Mercer also voiced opposition to this type of financial activity for the state, saying he didn’t “come here to do that.”Addressing risk concerns, Rep. Curtis Schomer, the bill sponsor, argued that not passing the bill would present actual risk. He also noted that sticking to traditional investments like bonds would risk the state’s purchasing power.In support of the bill, Rep. Lee Demming stated that it could maximize returns on taxpayer money, while Rep. Curtis Schomer, also the bill sponsor, argued that the state’s surplus funds could be used more effectively. He saw the potential for generating returns that could lead to tax cuts and fiscal relief.Despite a strong push from its supporters, House Bill 429 was ultimately rejected by the Montana House of Representatives.The outcome contrasts sharply with the bill’s previous success in the state’s business and labor committee, where it passed by a 12-8 vote along strict party lines, with all Republicans in favor and all Democrats opposed.Next Step?The bill, titled the “Inflation Protection Act of 2025,” was first introduced by Rep. C. Schomer and a bipartisan group of co-sponsors on Feb. 7.Its purpose is to diversify the state’s investment portfolio by authorizing the Board of Investments to allocate up to $50 million from the general fund to precious metals like gold, silver, and platinum, as well as digital assets such as cryptocurrencies and stablecoins.Now the bill failed to pass the second reading. Generally, this means that it will not move on to the next stages of the legislative process. It is highly unlikely that the bill will be reconsidered during the same legislative session.While the bill is dead for that particular session, it’s possible that a similar bill could be introduced in a future legislative session.The bill’s sponsors might choose to revise it, address the concerns raised during the second reading, and reintroduce it at a later time.The Montana bill’s defeat comes amid a national trend of states exploring the potential of digital asset reserves. Currently, 24 states across the U.S., including Arizona, Illinois, Kentucky, Ohio, and Texas, have introduced bills proposing to purchase Bitcoin reserves.Utah has made the most regulatory progress, with its House Bill 230 passing through the House and moving to the Senate for consideration. This places Utah as a frontrunner in adopting a Bitcoin reserve at the state level.Arizona’s Senate Finance Committee approved the Arizona Strategic Bitcoin Reserve Act (SB1025), which allows the state to invest up to 10% of public funds in Bitcoin. This bill is currently in progress.On Saturday, Georgia Democratic lawmakers introduced a new bill that would allow the state treasury to invest in Bitcoin. The bill, known as Senate Bill 178, follows closely on the heels of Senate Bill 178, sponsored by Republicans, which was presented a mere ten days prior.The post Montana’s Bitcoin Reserve Bill Fails on Second Reading, Now Dead appeared first on Blockonomi.