Montana's House Business and Labor Committee advanced a bill that could potentially allow Bitcoin and other cryptocurrencies to be utilized as reserve assets.

House Bill No. 429, which is the fourth crypto reserve bill at the state level in the United States, was passed in a 12-8 vote, with a clear division along party lines as all Republicans supported the bill and all Democrats voted against it.

According to CoinTelegraph, the bill proposes the establishment of a special revenue account for the state to invest in precious metals, stablecoins, and digital assets that have maintained an average market capitalization of over $750 billion in the past calendar year. Currently, Bitcoin is the only digital asset that fulfills this criterion.

With the passing of this bill by the committee, Montana joins a select group of states including Utah, Arizona, and Oklahoma, which have seen similar Bitcoin reserve-related bills progress to the House.

The bill has been amended to eliminate the stipulation that the funds must be managed by a qualified custodian or through an exchange-traded fund. If the bill is enacted, it would take effect on July 1, permitting the state treasurer to allocate up to $50 million into a special account designed for investments in precious metals, digital assets, and stablecoins by July 15.

Several other states, such as Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas, have also introduced legislation regarding Bitcoin reserves.

Utah is currently leading the way in regulatory progress, being the only state to have a Bitcoin reserve bill passed through the House. Dennis Porter, CEO of Satoshi Action (WA: ACT ) Fund, has suggested that Utah might become the first state to establish a Bitcoin reserve, highlighting the state's shorter legislative window and strong political support for the initiative.

At the federal level, US Senator Cynthia Lummis continues to advocate for the passage of a Bitcoin reserve bill.

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