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SB 265MONTANASession 2025State BillSigned into law
Enacted

Montana Enacts Financial Freedom and Innovation Act to Regulate Cryptocurrency and Prohibit Central Bank Digital Currency

Original title: Revise cryptocurrency laws to create Financial Freedom and Innovation Act

Last action · May 8, 2025: Chapter Number AssignedSponsor: Daniel Zolnikov

Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Does

Montana prohibits governing authorities from accepting central bank digital currencies or participating in federal reserve digital currency tests, while permitting individuals and businesses to use digital assets and operate blockchain nodes. The new law establishes certification and disclosure requirements for issuers seeking securities exemptions, capping sales at $250 million annually.

Why it matters

The measure alters how state and local public bodies interact with digital currencies by banning state use of , while setting compliance pathways for digital asset businesses and issuers operating in the state.

Background
  • SB 265 was introduced during the 2025 legislative session by Senator Daniel Zolnikov and enacted into law as the Financial Freedom and Innovation Act. context
  • State-level legislative efforts regarding cryptocurrency and central bank digital currencies have emerged across multiple U.S. states to address digital asset custody and tender definitions. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Governing authorities

Public bodies are barred from accepting central bank digital currencies or participating in federal reserve currency tests.

Directly affected

Network token issuers

Token issuers must meet certification requirements, obtain written approval from the securities commissioner, and adhere to a $250 million annual sales limit to qualify for securities exemptions.

Directly affected

Digital asset users and businesses

Individuals and businesses gain explicit legal permissions to accept digital assets, operate blockchain nodes, use self-hosted wallets, and participate in staking.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Can state and local government agencies in Montana accept central bank digital currency?
No. Under SB 265, governing authorities are explicitly prohibited from accepting or requiring payments using .
Are businesses offering staking services considered securities issuers under the new law?
No. A business offering to provide as a service to individuals or other businesses is not considered as offering a security or investment contract pursuant to state securities laws.
What is the sales limit for network tokens issued under the act?
The aggregate of s sold by a network token issuer to investors in a 12-month period may not exceed $250 million, adjusted annually by the SEC.

What else do you want to know?

News Coverage

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Where This Stands

Current status: Signed into law.

Procedural history

38 actions
  1. May 8, 2025Senate
    Chapter Number Assigned
  2. May 5, 2025SenateEnrolled
    (S) Signed by Governor
  3. Apr 25, 2025Senate
    (S) Transmitted to Governor
  4. Apr 25, 2025House
    (H) Signed by Speaker
  5. Apr 21, 2025Senate
    (S) Signed by President
  6. Apr 12, 2025Senate
    (S) Returned from Enrolling
Show 32 earlier actions
  1. Apr 11, 2025Senate
    (S) Sent to Enrolling
  2. Apr 11, 2025House
    (H) 3rd Reading
  3. Apr 11, 2025House
    (H) Scheduled for 3rd Reading
  4. Apr 10, 2025House
    (H) 2nd Reading
  5. Apr 10, 2025House
    (H) Scheduled for 2nd Reading
  6. Mar 24, 2025HouseCommittee
    (H) Committee Report
  7. Mar 21, 2025HouseCommittee
    (H) Committee Executive Action
  8. Mar 17, 2025House
    (H) Hearing
  9. Mar 6, 2025House
    (H) 1st Reading
  10. Mar 5, 2025HouseCommittee
    (H) Referred to Committee
  11. Mar 4, 2025Senate
    (S) Transmitted to House
  12. Mar 4, 2025Senate
    (S) 3rd Reading
  13. Mar 4, 2025Senate
    (S) Scheduled for 3rd Reading
  14. Mar 3, 2025Senate
    (S) 2nd Reading
  15. Mar 3, 2025Senate
    (S) Scheduled for 2nd Reading
  16. Mar 1, 2025SenateFloor
    (S) 2nd Reading Pass Consideration
  17. Feb 26, 2025SenateCommittee
    (S) Committee Report
  18. Feb 25, 2025SenateCommittee
    (S) Committee Executive Action
  19. Feb 13, 2025Senate
    (S) Hearing
  20. Feb 5, 2025SenateCommittee
    (S) Referred to Committee
  21. Feb 5, 2025Senate
    (S) 1st Reading
  22. Feb 4, 2025SenateIntroduced
    (S) Introduced
  23. Feb 4, 2025House
    (LC) Draft Delivered to Requester
  24. Feb 4, 2025House
    (LC) Draft Ready for Delivery
  25. Jan 31, 2025House
    (LC) Draft in Assembly
  26. Jan 31, 2025House
    (LC) Draft in Final Drafter Review
  27. Jan 30, 2025House
    (LC) Draft in Input/Proofing
  28. Jan 29, 2025House
    (LC) Draft in Edit
  29. Jan 13, 2025House
    (LC) Draft in Legal Review
  30. Jan 10, 2025House
    (LC) Draft Taken Off Hold
  31. Sep 27, 2024House
    (LC) Draft On Hold
  32. Sep 27, 2024House
    (LC) Drafter Assigned

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Daniel ZolnikovSenate · District 22RepublicanPrimary sponsor

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift98% confidence

State-Level Prohibition of Central Bank Digital Currency

Montana preemptively blocks public bodies from engaging with federal central bank digital currencies while creating an explicit regulatory harbor for blockchain technologies and network tokens.

Federal Reserve SystemMontana

Connected Entities

Daniel Zolnikov, Securities and Exchange Commission, K. Zolnikov and 2 more
PersonDaniel Zolnikov“Primary sponsor of SB 265 in the Senate”Map →
OrganizationSecurities and Exchange Commission“Federal agency publishing consumer price index adjustments and regulation D rule”Map →
PersonK. Zolnikov“Co-sponsor of SB 265”Map →
OrganizationFederal Reserve System“Federal reserve system conducting central bank digital currency tests”Map →
locationMontana“State jurisdiction enacting SB 265”Map →

Sources

Open source document

bills.legmt.gov

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz70
    Current news / social attention level

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