- Georgia’s SB 228 allows unlimited Bitcoin investments without restrictions or caps.
- Montana’s HB 429 fails due to concerns over taxpayer funds and lack of oversight.
- At least 19 states, including Arizona and Texas, continue pursuing Bitcoin reserve proposals.
The U.S. state of Georgia has introduced a second Bitcoin reserve bill (SB 228), allowing the state to invest in Bitcoin without setting any investment limits.
This bill follows a previous proposal intended to enable the state treasurer to make investments in Bitcoin, and this new bill seeks to establish a structure for how these investments will be managed.
Georgia’s Uncapped Bitcoin Bet
Notably, unlike other similar bills, SB 228 does not include any caps on Bitcoin investments. The proposed legislation concerns state deposit institutions, with a focus on allowing the state treasurer to make Bitcoin investments.
It also sets provisions for managing the assets, including requirements for secure handling and lending and repealing any conflicting laws.
Related: Senator Cynthia Lummis Introduces Strategic Bill: Bitcoin as a National Reserve
Montana House Blocks Bitcoin Reserve Bill
Meanwhile, Montana’s Bitcoin reserve bill, HB 429, however, failed to pass a second reading in the Montana House of Representatives with a vote of 41 to 59.
The rejection followed financial conservative concerns. Critics opposed using state funds for Bitcoin investments, calling it speculation with taxpayer dollars.
Financial Concerns Sink Montana Bill
The attempt to fund the bill using interest from the American Rescue Plan Act (ARPA) rather than General Fund money also fell short. Lawmakers raised doubts about the legality of using ARPA funds for this purpose.
Additionally, concerns regarding the responsibility of Bitcoin investments contributed to the bill’s failure. Some legislators argued that granting the Board of Investment the discretion to invest in non-fungible tokens and digital assets would be reckless.
Bitcoin Reserve Momentum Grows in Other States
Despite Montana’s proposal failing, many other states are pushing forward with Bitcoin reserve plans.
Currently, 19 state-level proposals, including those in Arizona, Illinois, Kentucky, and Texas, are still being reviewed. Arizona’s Senate Finance Committee is considering a bill allowing up to 10% of public funds, including pension systems, to be invested in digital assets.
Related: Texas Moves Forward with Bill to Create State Bitcoin Reserve
Additionally, Utah’s Blockchain and Digital Innovation Amendments bill, which would permit the state treasurer to allocate up to 5% of public funds to digital assets, remains under consideration.
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