South Dakota Lawmaker Revives Bitcoin Reserve Push with New Bill

In Brief

• South Dakota seeks to allocate 10% of state funds in Bitcoin investments.
• Bill includes strong security measures for state-held Bitcoin assets.
• Bitcoin continues to show positive price performance, rising by 2.23%.

South Dakota is reintroducing a proposal to invest public funds in Bitcoin. Representative Logan Manhart introduced House Bill 1155, aiming to allocate up to 10% of eligible state funds to cryptocurrency.

The bill would allow the State Investment Council to invest in Bitcoin through direct holdings, custodians, or regulated exchange-traded products. Manhart emphasized Bitcoin as “strong money,” arguing that its inclusion could enhance the state’s financial stability.

The proposed bill also includes strict security measures for state Bitcoin holdings. These measures cover encrypted private key storage, multi-location custodianship, and multi-party governance controls for transactions. The bill mandates regular security audits, disaster recovery planning, and penetration testing to protect the funds.

South Dakota Revisits Bitcoin Reserve with Strict Security Measures for State Investments

This new push comes after a similar bill, introduced in 2025, was deferred due to legislative timing constraints. It reflects a broader trend as more states, including Texas, Arizona, and New Hampshire, seek to integrate Bitcoin and other digital assets into their public investment strategies. 

Despite these state-level moves, federal regulations remain restrictive, limiting direct government investments in cryptocurrencies.

Manhart’s new bill also highlights the growing momentum behind Bitcoin reserves at the state level, even as federal-level plans remain in limbo. If passed, South Dakota would join the ranks of states experimenting with Bitcoin as a reserve asset, continuing the state’s push to modernize its financial infrastructure.

Bitcoin’s price continues to perform positively. As of the latest data from CoinMarketCap, Bitcoin (BTC) is priced at $89,738.94, showing a 0.46% increase in the last hour. Over the past 24 hours, it rose by 2.23%, and in the past week, it gained 1.51%.