South Dakota lawmaker revives push to let the state invest in Bitcoin On Jan. 27, State Representative Logan Manhart reintroduced legislation that would let South Dakota deploy a portion of its public funds into Bitcoin. House Bill 1155, a near-repeat of a 2025 proposal that stalled in committee, would formally amend the state’s investment code to allow the State Investment Council to allocate up to 10% of its portfolio to Bitcoin. What the bill would allow - Allocation limit: up to 10% of state-managed funds could be invested in Bitcoin. With South Dakota’s investment pool previously estimated at roughly $16–17 billion, that cap could translate into multi-billion-dollar exposure if fully used. - Forms of exposure: the state could hold Bitcoin directly or gain exposure via regulated exchange-traded products (ETPs). - Custody and regulatory guardrails: any direct holdings must meet strict custody standards and be held by qualified custodians such as federally or state-chartered banks or trust companies. ETPs would require approval from U.S. regulators (SEC or CFTC) or South Dakota’s Division of Banking. Manhart frames Bitcoin as a hedge Manhart has described Bitcoin as “strong money” for a “strong state,” pitching the measure as a tool to guard against inflation and long-term currency risk. He originally filed South Dakota’s first Bitcoin investment bill in January 2025, alongside a resolution calling for a formal review of Bitcoin’s utility as an inflation hedge. Opposition and unresolved concerns The 2025 effort did not advance after lawmakers raised familiar objections: price volatility, valuation challenges, and regulatory uncertainty. State Investment Officer Matt Clark was among officials who expressed reservations. Manhart indicated he would reintroduce the idea, and HB 1155 is that renewed effort. Where this fits in the broader trend The proposal arrives amid a growing national conversation as several U.S. states consider whether and how to incorporate digital assets into public finance. If passed, South Dakota would join only a small handful of states that have taken steps to hold or allocate public funds to Bitcoin—typically under clear limits and oversight. Next steps HB 1155 is in the early stages of the legislative process and has not yet reached a vote. The bill revives the debate over risk exposure, diversification, and the role digital assets might play in state investment strategies. Read more AI-generated news on: undefined/news

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