South Dakota Lawmaker Revives Bill to Allow State Bitcoin Investment
A South Dakota lawmaker has reintroduced laws that may permit the state to make investments a portion of its public funds in Bitcoin, reviving a proposal that stalled throughout final yr’s legislative session.
Key Takeaways:
- A South Dakota invoice would permit the state to make investments up to 10% of eligible public funds in Bitcoin by way of a number of publicity choices.
- The proposal contains strict custody and safety guidelines for any state-held Bitcoin.
- The effort displays a broader pattern as US states discover Bitcoin-backed reserve methods.
Republican Representative Logan Manhart introduced House Bill 1155 on Tuesday, searching for to amend South Dakota’s public funding statutes to allow the State Investment Council to allocate up to 10% of eligible state funds to Bitcoin.
The invoice would permit publicity by way of direct holdings, certified custodians or regulated exchange-traded merchandise.
South Dakota Bitcoin Bill Sets Strict Custody and Security Rules
“I’m proud to say I’ve launched my invoice that may permit the State of South Dakota to spend money on Bitcoin,” Manhart wrote in a publish on X. “Strong cash. Strong state.”
The proposal outlines detailed custody and safety necessities for any state-held Bitcoin.
These embody unique management of personal keys, encrypted {hardware} storage, geographically distributed safe amenities, multi-party governance controls and common safety audits.
House Bill 1155 has acquired its first studying and has been referred to the Committee on Commerce and Energy, in accordance to the official legislative journal.
The measure intently resembles House Bill 1202, which Manhart launched through the 2025 legislative session.
That earlier effort sought to add Bitcoin to the checklist of permissible state investments however failed to advance after being deferred past South Dakota’s 40-day legislative session restrict.
The renewed push comes as curiosity in Bitcoin-backed reserves grows amongst US states.
Lawmakers in Kansas and Florida have advanced similar proposals, whereas Arizona, Texas and New Hampshire have already handed laws permitting some type of crypto reserve technique.
At the federal degree, the US authorities established a strategic Bitcoin reserve final yr following a March government order signed by President Donald Trump.
The reserve is funded utilizing Bitcoin seized in legal and civil circumstances, belongings which are legally barred from being bought.
Supporters argue that Bitcoin might function a long-term hedge towards inflation and foreign money debasement, whereas critics have raised issues about worth volatility and danger administration.
Kansas Weighs Bitcoin Reserve Fund
As reported, lawmakers in Kansas are considering legislation that would create a state-managed Bitcoin and digital belongings reserve funded fully by unclaimed digital property already held by the state.
Senate Bill 352, launched by Senator Craig Bowser, proposes establishing a reserve throughout the state treasury overseen by the Kansas state treasurer, with out utilizing taxpayer funds or direct cryptocurrency purchases.
Under the proposal, the reserve can be constructed from deserted digital belongings resembling unclaimed Bitcoin, different cryptocurrencies, airdrops, staking rewards and curiosity that fall underneath Kansas’ unclaimed property legal guidelines.
The invoice specifies that 10% of every deposit can be transferred to the state’s common fund, whereas Bitcoin would stay locked throughout the reserve.
Internationally, countries such as El Salvador and Bhutan have already taken extra direct approaches, incorporating Bitcoin into nationwide methods by way of state holdings, mining initiatives, and growth initiatives tied to digital belongings.
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