Montana Central Bank Digital Currency Prohibition

Montana’s Central Bank Digital Currency Prohibition is the CBDC-focused portion of Senate Bill 265, codified in the Montana Code Annotated as part of the Financial Freedom and Innovation Act. As of June 9, 2026, the measure is effective Montana law. It became operative on Oct. 1, 2025 under Montana’s default effective-date rule for statutes that do not prescribe a different date.

The prohibition sits in Title 30, chapter 24, part 1, which Montana labels “Digital Assets.” The provision is narrow: it addresses what a state or local “governing authority” may do with a central bank digital currency. It does not create a private right to launch a CBDC, and it does not replace federal law.

Central bank digital currency prohibition in Montana

Montana Code Annotated § 30-24-103 provides that a governing authority may not accept or require payment using a central bank digital currency. It also bars a governing authority from participating in a CBDC test run by the Board of Governors of the Federal Reserve System or by a branch or agency of the federal government.

The statute’s reach depends on two definitions in the same part. A “governing authority” means a board, commission, department, or other agency of the state, or a political subdivision in Montana. A “central bank digital currency” means a digital currency, digital medium of exchange, or digital monetary unit of account issued by the U.S. Federal Reserve System or a federal agency and made directly available to institutions or consumers, or processed or validated directly by those entities. The definition excludes a private digital asset backed by legal tender or government treasuries.

Relationship to Montana’s digital asset framework

Although the CBDC provision is the most direct focus of this profile, SB 265 is broader than a CBDC restriction. The same act recognizes several private digital asset activities. Montana law states that a governing authority may not prohibit, restrict, or impair the ability of an individual or business to accept digital assets as payment for legal goods and services, or to take custody of digital assets using a self-hosted wallet or hardware wallet.

The act also states that a business or individual in Montana may operate a node, develop software on a blockchain protocol, transfer digital assets using a blockchain protocol, and participate in staking. Separately, the law creates a state securities exemption pathway for qualifying network-token issuers, subject to filings, disclosures, and approval by the Montana securities commissioner. The Montana Commissioner of Securities and Insurance announced after the effective date that its Securities Division was accepting submissions from network token issuers under SB 265.

Status and timeline

SB 265 was introduced in the 2025 Montana Legislature as a Senate bill. It passed the Senate, was concurred in by the House, and was signed by the governor on May 5, 2025. The chapter number was assigned on May 8, 2025, and the codified CBDC provision now appears at MCA § 30-24-103 as Chapter 379, Laws of 2025.

The enacted text does not appear to contain a special effective-date section. Montana’s general effective-date statute provides that, unless a different time is prescribed, statutes adopted after Jan. 1, 1981 take effect on the first day of October following passage and approval. On that basis, this profile treats the law as effective on Oct. 1, 2025.

Jurisdictional impact

For CryptoSlate reference purposes, the law is best understood as a Montana state-level public-sector CBDC restriction combined with a broader digital asset policy framework. It affects Montana governing authorities directly, while adjacent provisions address private digital asset use, self-custody, staking, blockchain protocol participation, and network-token issuance. This profile is informational and does not provide legal or compliance advice.