South Dakota lawmaker revives bitcoin reserve push with new bill

A South Dakota lawmaker has introduced a bill that seeks to allow the state to invest a portion of its public funds in bitcoin BTC, reviving efforts that failed to materialize in the state legislature last year. 

Republican Representative Logan Manhart introduced House Bill 1155 on Tuesday, aiming to amend South Dakota's public investment statutes to permit the State Investment Council to allocate up to 10% of eligible state funds in bitcoin. This 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 in a post on X. "Strong money. Strong state."

The bill also lays out custody and security requirements for state bitcoin holdings, including exclusive private-key control, encrypted hardware storage, geographically distributed secure facilities, multi-party governance controls, and regular security audits.

House Bill 1155 has been read for the first time and referred to the Committee on Commerce and Energy, according to the official journal log of the legislative session.

Second try

The latest proposal closely mirrors House Bill 1202, which Manhart introduced during the 2025 legislative session. That bill sought to add bitcoin to the list of permissible state investments but was effectively killed after being deferred to the legislature's 41st day, beyond South Dakota's 40-day session limit.

This renewed effort in South Dakota comes as more U.S. states explore the idea of strategic bitcoin reserves. Lawmakers in Kansas and Florida have advanced similar proposals. To date, Arizona, Texas, and New Hampshire have passed crypto reserve legislation.

Meanwhile, the U.S. federal government established a strategic bitcoin reserve last year, following a March executive order by President Donald Trump. This national stockpile is funded by bitcoin seized in criminal and civil proceedings, which are legally prohibited from being sold.