South Dakota Reignites Push for Bitcoin in Public Funds: A National Trend Emerges

South Dakota is once again at the forefront of a burgeoning movement, with a renewed legislative effort to integrate Bitcoin into the state’s public asset allocation. A state representative has recently introduced a groundbreaking bill, aiming to empower the state government to strategically invest a portion of its public funds in Bitcoin, rekindling a pivotal initiative that narrowly failed last year.

House Bill 1155: Paving the Way for Bitcoin Integration

On Tuesday, Republican Representative Logan Manhart of South Dakota officially filed “House Bill 1155.” This proposed legislation seeks to amend the state’s public investment statutes, granting the State Investment Council the authority to allocate up to 10% of eligible state government funds into Bitcoin. The bill outlines diverse investment avenues, including direct spot holdings, engagement with compliant custodians, or the acquisition of regulated Exchange-Traded Products (ETPs) such as spot Bitcoin ETFs.

Following the bill’s submission, Representative Manhart took to social media platform X, confidently stating: “I am proud to announce that I have officially filed a bill to allow South Dakota to invest in Bitcoin. Strong money makes a strong state.” This declaration underscores the conviction behind the initiative, positioning Bitcoin as a foundation for economic strength.

Prioritizing Security: Robust Custody and Cybersecurity Protocols

A critical aspect of House Bill 1155 is its comprehensive framework for the secure custody and management of state-held Bitcoin. The bill meticulously addresses potential concerns regarding the security of public digital asset holdings by mandating stringent protocols. These include: the state government’s complete control over exclusive private keys, the mandatory use of cold storage solutions, the establishment of geographically dispersed high-security facilities, multi-party governance controls, and a schedule for regular, independent security audits. These measures aim to set a new standard for public sector digital asset management.

A Resilient Effort: Learning from Past Legislative Hurdles

This is not Representative Manhart’s inaugural foray into this legislative arena. During the previous 2025 session, he introduced a similar measure, House Bill 1202. Despite generating significant public discourse and interest, that bill ultimately faced a procedural setback, being delayed beyond the statutory 40-day deliberation period and consequently failing to pass. The reintroduction of this legislation highlights a persistent commitment to securing Bitcoin as a strategic asset for South Dakota.

A Growing National Movement: States Embrace Bitcoin Reserves

South Dakota’s proactive stance is emblematic of a broader, accelerating trend across the United States, as states increasingly explore and adopt “Bitcoin reserve” strategies. Kansas and Florida are actively advancing comparable legislative proposals, demonstrating a shared vision for diversifying state treasuries with digital assets. Leading the charge, Arizona, Texas, and New Hampshire have already successfully enacted legislation pertaining to cryptocurrency reserves, setting precedents for others to follow.

Adding another layer to this national narrative, the U.S. federal government itself established a strategic Bitcoin reserve last year. Primarily sourced from judicially confiscated Bitcoin, these assets are legally designated as non-sellable and are recognized as national strategic assets, further legitimizing Bitcoin’s role in public finance at the highest level.