title: US-MT — Stablecoins & Digital Money (W2) | World Payments Monitor canonical: https://payments.gi/jurisdictions/united-states-montana/w2/ ### W2 Stablecoins & Digital Money Probable re-verified 2026-10-18 · changed 2026-07-05 Montana enacted the Financial Freedom and Innovation Act (SB 265) in October 2025, creating a network-token regulatory framework, CBDC prohibition, and self-custody protections, building on SB 178 (2023). Standing sub-brief · as of 5 July 2026 188 words · last cycle 2026-07-05 #### Stablecoins & Digital Money Montana enacted the Financial Freedom and Innovation Act (SB 265) in October 2025, creating the state's first regulatory framework for "network tokens" under the authority of the State Auditor (Commissioner of Securities and Insurance), alongside an explicit prohibition on central bank digital currency and statutory protections for self-custody and staking. The Act builds directly on the 2023 "Right to Mine" Act (SB 178), which had already established baseline protections for crypto-mining activity, extending Montana's crypto-friendly legislative trajectory into token issuance and custody. The combination - permissive network-token framework, CBDC ban, self-custody protection - positions Montana as a comparatively liberal outlier among US states on digital-asset market structure, a framing with direct commercial relevance for payments-token issuers scouting lighter-touch state oversight environments. A Blockchain and Digital Innovation Task Force has been formed alongside the Act's passage to guide implementation. #### Outlook The Task Force's follow-on findings and recommendations are an explicit lead signal for the next cycle, as is the practical question of how the State Auditor's office operationalizes network-token oversight given its office is simultaneously prosecuting a rising volume of crypto-fraud cases (see W7, W10). no periodic updates on record for this sub-brief ** Sources and findings (5 unique sources · R-3/R-4)** 1. [W2-E1] T1 Derived: Confirmed [in_force https://csimt.gov/2025/10/07/montana-opens-the-door-to-digital-asset-innovation-with-financial-freedom-and-innovation-act/](https://csimt.gov/2025/10/07/montana-opens-the-door-to-digital-asset-innovation-with-financial-freedom-and-innovation-act/) re-verified 2026-07-05 Montana launched the Financial Freedom and Innovation Act in October 2025 (SB 265), establishing a comprehensive framework allowing companies that issue network tokens to operate legally in-state while giving the State Auditor's office clear authority to regulate the industry and prosecute fraud. 2. [W2-E2] T2 Derived: Confirmed [in_force https://dailymontanan.com/2025/10/08/montana-moves-forward-on-regulatory-framework-for-blockchain-digital-assets/](https://dailymontanan.com/2025/10/08/montana-moves-forward-on-regulatory-framework-for-blockchain-digital-assets/) re-verified 2026-07-05 SB 265, carried by Sen. Daniel Zolnikov, defines terms such as network token, blockchain, and decentralized network in state law and provides the framework for uses of network tokens and compliance boxes businesses must check to do business in Montana. 3. [W2-E3] T3 Derived: Probable [draft_no_legal_force https://www.montanasmarketplace.com/montana-living/crypto-in-montana](https://www.montanasmarketplace.com/montana-living/crypto-in-montana) re-verified 2026-07-05 The Financial Freedom and Innovation Act (SB 265, 2025) bans central bank digital currencies, protects self-custody, and creates a regulatory framework for network tokens, building on the 'Right to Mine' bill (SB 178, 2023) that prohibits discriminatory utility rates and local mining bans. 4. [W2-E4] T3 Derived: Probable [in_force https://cointelegraph.com/news/montana-governor-signs-pro-cryptocurrency-mining-bill-into-law](https://cointelegraph.com/news/montana-governor-signs-pro-cryptocurrency-mining-bill-into-law) re-verified 2026-07-05 Governor Gianforte signed SB 178 into law on May 2, 2023, enshrining crypto miners' rights by prohibiting discriminatory electrical rates for mining firms and disallowing taxation for crypto used as a method of payment. 5. [W2-E5] T2 Derived: Confirmed [in_force https://www.kpax.com/news/montana-news/montana-moves-forward-on-regulatory-framework-for-blockchain-digital-assets](https://www.kpax.com/news/montana-news/montana-moves-forward-on-regulatory-framework-for-blockchain-digital-assets) re-verified 2026-07-05 The 2025 Legislature created the Blockchain and Digital Innovation Task Force, comprising legislators, State Auditor and Attorney General representatives, and public members, which held its first meeting in November 2025 to study digital asset regulation and state competitiveness.