- Montana advances the Bitcoin Reserve bill, joining a growing list of U.S. states exploring crypto-backed reserves.
- Utah leads in Bitcoin Reserve legislation, with the highest progress among U.S. states.
The close of 2024 and the onset of 2025 have marked a remarkably positive phase for the cryptocurrency sector.
While discussions about Donald Trump’s Strategic Bitcoin [BTC] Reserve proposal gain momentum, states are taking steps to integrate Bitcoin into their financial frameworks.
Montana makes the move
Montana is a frontrunner in the Bitcoin Reserve movement. The House Business and Labor Committee recently approved a bill allowing the state to hold Bitcoin and other cryptocurrencies as reserve assets.
Source: Satoshi Action Fund/X
House Bill No. 429 passed on the 19th of February in a 12-8 vote along party lines. It gained unanimous Republican support while facing Democratic opposition. The bill positions Montana among states exploring crypto-backed reserves.
As the fourth such measure to reach a U.S. state legislature, the bill proposes a special revenue account.
This account is for investments in precious metals, stablecoins, and digital assets with a market cap exceeding $750 billion over the past year.
What to expect?
Montana’s Bitcoin Reserve Bill is advancing to the state’s House, joining Utah, Arizona, and Oklahoma in crypto reserve legislation.
If enacted, the bill creates a special revenue account for investments in precious metals, stablecoins, and high-market-cap digital assets.
A key amendment removed the requirement for holdings to be managed by a qualified custodian or through an exchange-traded fund (ETF).
If the legislation passes, it will take effect on the 1st of July. The state treasurer can allocate up to $50 million into the account by mid-July, broadening Montana’s financial diversification strategy.
Other states in the Bitcoin Reserve race
The movement toward state-backed Bitcoin Reserves is gaining traction across the U.S. Illinois, Kentucky, Maryland, and other states are proposing similar bills.
Utah has made the most legislative progress. Industry experts believe it could be the first to implement a Bitcoin Reserve, given its efficient legislative process and favorable political climate.
Efforts at the federal level continue, with Senator Cynthia Lummis advocating for nationwide adoption.
Market sentiment remains cautious, with Polymarket estimating only a 10% likelihood of Donald Trump establishing a BTC Reserve within his first hundred days.
Despite this uncertainty, VanEck’s Head of Research, Mathew Sigel, projects that if 20 state-led Bitcoin Reserve bills are approved, they could generate over $23 billion in demand for BTC.
This would further solidify Bitcoin’s role in institutional finance.
