Lawmakers revive plan to modernize South Dakota’s investment strategy with cryptocurrency exposure.
South Dakota lawmakers are reconsidering a proposal that would allow the state to invest public funds in Bitcoin, reviving a plan first introduced last year.
Proposed Investment Framework
Republican State Representative Logan Manhart has reintroduced legislation that would amend South Dakota’s public investment rules, permitting the State Investment Council to allocate up to 10% of eligible state-managed funds to Bitcoin.
Eligible funds include pensions, endowments, and other professionally managed state portfolios.
The bill outlines multiple routes for Bitcoin exposure, including direct holdings, regulated custodians, and exchange-traded products.
It also establishes security and operational protocols, emphasizing custody, auditability, and hardened storage to mitigate risks related to private key management.
Legislative Context and Implications
Manhart described the initiative as a balance-sheet modernization effort. A similar proposal stalled during the previous legislative session.
The legislation has received its first reading and been referred to committee. Its passage would signal growing state-level acceptance of Bitcoin, providing a framework for public fund investment and governance that other states may reference.
State-Level Bitcoin Moves
South Dakota’s proposal comes as more U.S. states explore Bitcoin in public finance. New Hampshire became the first to pass a strategic Bitcoin reserve law, allowing up to 5% of public funds in high‑cap digital assets.
Texas followed with its own state‑managed Bitcoin reserve legislation. Arizona updated its unclaimed property rules to hold seized digital assets in their original form. The moves signal growing experimentation with cryptocurrency in state treasuries.
Why This Matters
If passed, the bill would make South Dakota one of the few U.S. states formally allowing public funds to hold Bitcoin, signaling a potential shift in how state treasuries approach cryptocurrency.
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