South Dakota Bill Proposes Bitcoin Reserve For State Funds Up To 10%

TLDR

• South Dakota’s House Bill 1155 proposes a 10% state fund investment in Bitcoin.
• The bill includes strict security measures for handling Bitcoin investments.
• Similar initiatives are underway in Kansas, Florida, and other U.S. states.
• Previous attempts to pass similar Bitcoin bills in South Dakota failed last year.

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South Dakota Representative Logan Manhart has reintroduced a bill aiming to allow the state to invest in Bitcoin. House Bill 1155 would allow the South Dakota State Investment Council to allocate up to 10% of eligible state funds into Bitcoin. This proposal follows a failed attempt last year but reflects growing support for Bitcoin-related initiatives in other U.S. states.

The bill specifies how these investments would be handled. It provides for the state to directly hold Bitcoin, invest via qualified custodians, or through regulated exchange-traded products. Additionally, the bill places strict requirements on custody and security measures for these investments.

Security Measures for Bitcoin Investments

One of the key elements of House Bill 1155 is its emphasis on secure handling of Bitcoin. The bill mandates strict custody requirements, which include private-key control, encrypted hardware storage, and geographically distributed secure facilities. To further enhance security, multi-party governance controls and regular security audits are required. These provisions are designed to ensure that the state’s Bitcoin holdings remain safe from theft or loss.

The bill sets these high standards to ensure the protection of public funds. It also aims to demonstrate the state’s commitment to a strong and secure investment strategy. Representative Manhart emphasized the importance of these safeguards, highlighting their role in maintaining public trust in the state’s approach to cryptocurrency investments.

Reviving the Proposal After a Failed Attempt

This new bill mirrors a similar proposal introduced in 2025, which failed to progress due to timing issues within South Dakota’s legislative calendar. House Bill 1202, which was introduced during the 2025 legislative session, was deferred to the 41st day of the legislative session, which was beyond the state’s 40-day limit. Despite this setback, Representative Manhart is hopeful that House Bill 1155 will find greater success this year.

Manhart has expressed his confidence in the bill, stating, “Strong money. Strong state.” He views Bitcoin as an innovative financial tool that can benefit the state in the long term, aligning with the growing trend of states looking to adopt cryptocurrency as part of their financial portfolios.

The Growing Trend of Bitcoin Investments in the U.S.

South Dakota is not the only state exploring the idea of Bitcoin reserves. Lawmakers in Kansas and Florida have also introduced similar measures. Arizona, Texas, and New Hampshire have already passed legislation allowing for cryptocurrency investments in state reserves.

As Bitcoin continues to gain acceptance in the financial world, states are increasingly interested in securing a portion of their financial assets in the cryptocurrency.

The federal government also established a strategic Bitcoin reserve last year, funded by Bitcoin seized in criminal and civil proceedings. This national initiative has sparked further interest in Bitcoin as a viable reserve asset for both state and federal governments.

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