South Dakota Lawmakers Reintroduce Bill to Invest Public Funds in Bitcoin

• South Dakota proposes investing up to 10% of public funds in Bitcoin with strict safeguards.
• The move reflects rising state-level interest in Bitcoin as a long-term reserve asset.

South Dakota lawmakers are once again considering allowing Bitcoin to be a part of States public investment strategy. On January 27, 2026, Logan Manhart, A State representative, reintroduced a bill that allows South Dakota to invest a portion of public-managed funds in Bitcoin. This proposal is filed as a House Bill 1155 (HB 1155). If it is approved, then South Dakota will be one of the growing groups of U.S. states exploring Bitcoin as an investment asset. 

House Bill 1155 proposes that South Dakota’s investment laws allow the State Investment Council to invest upto 10% of public funds in Bitcoin. Right now, South Dakota manages approximately $16 – $17 billion in public investment funds. The bill frames Bitcoin as a long-term storage value, which is suitable for protecting public funds against inflation and currency debasement over time.

The Proposal allows Bitcoin exposure through two regulated pathways.

• Direct Botcoin Holdings
• Exchange Traded Products (ETPs)

Direct Bitcoin holding means that if the state chooses to hold the Bitcoin directly, the assets must be stored with qualified custodians such as state-chartered banks and regulated trust companies. These safeguards are designed to reduce risk related to loss, theft, or mismanagement. 

Exchange Traded Products means the state could gain Bitcoin exposure through regulated financial products such as spot Bitcoin exchange-traded funds. Such products must be approved by relevant regulators, including the U.S. SEC, the Commodity Futures Trading Commission, and South Dakota’s Division of Banking.

Logan Manhart first introduced the Bitcoin investment bill in January 2025, but the lawmakers are worried about the Bitcoin price swings and volatility, and the bill did not pass as the state investment officials did not want to risk the public money on high-risk assets. The new bill reflects growing interest across the U.S. in using Bitcoin as a long-term storage of value. 

House Bill 1155 has not yet voted on and remains in the early stage. It must pass the committee discussions and gain legislative approval before becoming law. For now, the proposal reopens debate in South Dakota over innovation, risk, and the future of public investing. 

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