A new bill has been introduced in South Dakota that would allow the state to invest public funds in Bitcoin. Republican Representative Logan Manhart introduced House Bill 1155, which permits the State Investment Council to allocate up to 10 percent of its available investment funds into Bitcoin. This move marks a significant step toward incorporating cryptocurrency into the state’s investment portfolio. The legislation, presented during the 101st legislative session, outlines several secure methods for holding Bitcoin. Funds may be securely held directly by the Investment Council, entrusted to a qualified custodian, or acquired through exchange-traded products (ETPs) issued by registered investment companies. The bill places strong emphasis on security; the private keys for Bitcoin will remain under the Investment Council’s control and be stored in at least two geographically separated, encrypted, and hardware-secured environments. Multiple approvals will be required for transaction authorization, with strict controls on user access and comprehensive audit logs maintained. Additionally, regular code audits, penetration testing, and disaster recovery protocols will be implemented to ensure state assets remain secure and accessible. This proposal comes amid growing adoption of digital assets in public investment policies across various U.S. states. Recently, Rhode Island approved legislation exempting small Bitcoin transactions from state income and capital gains taxes temporarily, while New Hampshire authorized its treasurer to invest in Bitcoin and other major digital assets starting May 2025. These initiatives reflect the expanding global trend toward cryptocurrency and highlight U.S. states’ interest in financial innovation. If enacted, South Dakota would join the ranks of states including Bitcoin in their official investment portfolios.
Source: bitcoinmagazine
