Nikolas Sargeant
A South Dakota lawmaker has reintroduced legislation authorizing the state to invest a portion of public funds in Bitcoin, reviving a proposal that stalled during last year's legislative session as US states increasingly explore cryptocurrency-backed reserve strategies.
Republican Representative Logan Manhart introduced House Bill 1155 on Tuesday, seeking to amend South Dakota's public investment statutes to permit the State Investment Council to allocate up to 10% of eligible state funds to Bitcoin. The bill would allow exposure through direct holdings, qualified custodians, or regulated exchange-traded products.
"I am proud to say I have released my bill that would allow the State of South Dakota to invest in Bitcoin," Manhart wrote on X. "Strong money. Strong state."
The proposal outlines detailed custody and security requirements for any state-held Bitcoin, including exclusive control of private keys, encrypted hardware storage, geographically distributed secure facilities, multi-party governance controls, and regular security audits. The strict operational framework reflects concerns about safeguarding public assets in cryptocurrency markets.
House Bill 1155 has received its first reading and been referred to the Committee on Commerce and Energy, according to the official legislative journal. The measure closely resembles House Bill 1202, which Manhart introduced during the 2025 legislative session. That earlier effort sought to add Bitcoin to permissible state investments but failed to advance after being deferred beyond South Dakota's 40-day legislative session limit.
The renewed push arrives as interest in Bitcoin-backed reserves grows among US states. Lawmakers in Kansas and Florida have advanced similar proposals, while Arizona, Texas, and New Hampshire have passed legislation allowing some form of cryptocurrency reserve strategy, creating a patchwork of state-level Bitcoin adoption frameworks.
At the federal level, the US government established a strategic Bitcoin reserve last year following a March executive order signed by President Donald Trump. The reserve is funded using Bitcoin seized in criminal and civil cases, assets legally barred from being sold under forfeiture regulations.
Supporters argue Bitcoin could serve as a long-term hedge against inflation and currency debasement, while critics have raised concerns about price volatility and risk management challenges associated with allocating public funds to digital assets.
Kansas lawmakers are considering legislation creating a state-managed Bitcoin and digital assets reserve funded entirely by unclaimed digital property already held by the state. Senate Bill 352, introduced by Senator Craig Bowser, proposes establishing a reserve within the state treasury overseen by the Kansas state treasurer without using taxpayer funds or direct cryptocurrency purchases.
Under the Kansas proposal, the reserve would be built from abandoned digital assets including unclaimed Bitcoin, other cryptocurrencies, airdrops, staking rewards, and interest falling under Kansas' unclaimed property laws. The bill specifies 10% of each deposit would transfer to the state's general fund while Bitcoin remains locked within the reserve.
Internationally, countries including El Salvador and Bhutan have adopted more direct approaches, incorporating Bitcoin into national strategies through state holdings, mining initiatives, and development projects tied to digital assets.
