South Dakota Bill Proposes Bitcoin Investment for State Funds
- South Dakota bill allows state Bitcoin BTC -0.20% investments.
- The bill allocates up to 10% for Bitcoin.
- Prior legislation failed over volatility concerns.
South Dakota State Representative Logan Manhart introduced House Bill 1155 on January 27, 2026, proposing the state to invest up to 10% of public funds in Bitcoin.
The proposal signifies a strategic financial shift potentially influencing other states’ crypto adoption policies, reflecting growing mainstream interest despite previous volatility concerns.
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South Dakota Representative Logan Manhart has introduced House Bill 1155, which seeks to allow the state to invest up to 10% of eligible public funds in Bitcoin. This legislation marks Manhart’s second attempt following a similar proposal in 2025.
“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.” — Rep. Logan Manhart, South Dakota State Representative
Logan Manhart, along with co-sponsors Phil Jensen, Dylan Jordan, and Tom Pischke, aims to integrate Bitcoin into state investments. This initiative underscores a shift towards incorporating digital assets in governmental financial strategies.
The potential exposure to Bitcoin could impact state investment strategies, providing a new asset class for diversification. However, this approach may also introduce market volatility risks previously highlighted by state investment authorities.
The bill emphasizes secure custody of Bitcoin assets through qualified custodians and multi-location hardware wallets. This security-focused mandate addresses concerns about safekeeping and operational management.
Similar legislative efforts in states like New Hampshire and Texas indicate a growing trend of incorporating Bitcoin into public finance. South Dakota’s proposal may signal an increased acceptance of digital currencies in traditional financial systems.
The initiative aligns with a broader movement towards exploring Bitcoin’s role within state reserves. If approved, the bill could retrofit South Dakota’s investment landscape and potentially influence nationwide legislative directions.
