Key Takeaways
- South Dakota Representative Logan Manhart has introduced a bill to allow the state to invest public funds in Bitcoin.
- House Bill 1155 proposes investing up to 10% of select state funds in Bitcoin.
- The lawmaker introduced a similar bill in 2025, but it was blocked and not signed into law.
- This proposal follows a growing interest in Bitcoin reserves across the US and other nations.
A South Dakota lawmaker has introduced a bill to the legislature that seeks to allow the state to invest a portion of its public funds in Bitcoin. This comes just after about a year, when a similar legislation he introduced failed to be implemented.
Losing no hope, on Tuesday, the 27th, Logan Manhart introduced House Bill (HB) 1155 in South Dakota’s legislature. HB 1155 proposes allowing the State Investment Council to allocate up to 10% of state revenues to Bitcoin.
"I am proud to say I have released my bill that would allow the State of South Dakota to invest in Bitcoin. Strong money. Strong state." Manhart wrote in an X post.
A Revived Bill
The latest proposal closely mirrors House Bill 1202, which Manhart introduced in 2025. HB 1202 sought to add Bitcoin to the list of assets the State Investment Council is permitted to own, alongside traditional securities such as government bonds and exchange-traded funds (ETFs).
However, the bill was blocked by legislators over concerns about the volatility and risks associated with the currency. HB 1155 largely serves as a reintroduction of the failed 2025 proposal, with only a few notable changes.
First, the revised bill clarifies that Bitcoin exposure may be obtained in any of these three ways. First, through direct holdings by the State Investment Council, through a qualified custodian acting on its behalf, or via regulated exchange-traded products (ETPs).
Direct holdings must comply with strict custodial standards, allowing only qualified custodians such as federally or state-chartered banks or trust companies. ETPs on their side must qualify as registered investment companies and be traded on regulated exchanges, which subjects them to oversight by relevant U.S. or state regulators.
The bill also expands and tightens security requirements. Private keys must be kept in an encrypted hardware storage and used exclusively via end-to-end encrypted channels. Also, any hardware containing these keys must be maintained in at least two diverse geographical data centers under the authority of the State Investment Council. In addition, regular code audits and penetration testing must be done.
Beyond these refined custody, security, and definitional updates, the substance of the new bill remains unchanged from the earlier.
As of the time of writing, HB 1155 has received its first reading and has been referred to the Committee on Commerce and Energy.
Growing Interest in Bitcoin-Backed Reserve in the US and Beyond
This renewed push in South Dakota comes as interest in Bitcoin-backed reserves grows among US states and other nations.
For instance, lawmakers in the states of Kansas and Florida have advanced similar proposals. Arizona, Texas, and New Hampshire, on the other hand, have passed crypto reserve legislation.
Meanwhile, we witnessed the U.S. federal government establish a strategic bitcoin reserve last year, through an executive order signed by President Donald Trump. Also, countries like El Salvador and Bhutan have already taken more direct approaches to incorporate Bitcoin into national strategies through state holdings, mining initiatives, and development projects tied to digital assets.
While many have seen these moves as a solution against inflation and currency debasement, critics continue to raise concerns about price volatility associated with the currency.
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