South Dakota Proposes Bill for Bitcoin Investment Strategy

TLDR

• HB 1155 allows up to 10% of public funds for Bitcoin.
• The bill emphasizes secure custodianship and transaction approvals.
• South Dakota joins other states exploring cryptocurrency reserves.

South Dakota Representative Logan Manhart, a member of the Republican Party, has introduced a new legislative initiative called House Bill 1155 (HB 1155) designed to allow up to 10% of South Dakota’s public funds to be invested in Bitcoin. This move is meant to establish Bitcoin as a strategic reserve asset for the state. The bill places a strong emphasis on the secure custodianship of Bitcoin, including the implementation of direct holding with exclusive private key control, multi-party transaction approvals, and other stringent security measures.

The proposal does not specify an exact amount for the investment, but it outlines a cap at 10% of the state’s available public funds. This cap indicates the maximum portion of the public funds that could be allocated to Bitcoin, without prescribing a fixed dollar figure. The proposed bill, which is yet to gain legislative approval, enables Bitcoin holdings via various secure methods through qualified custodians, with the state’s Investment Council maintaining control over these assets.

Comparisons with Other State Initiatives

In recent years, several U.S. states have taken steps to explore cryptocurrency reserves. For instance, Texas enacted a law known as S.B.21 in June 2025, establishing a Texas Strategic Bitcoin Reserve after purchasing Bitcoin worth $5 million in December of the previous year. Similarly, states like Arizona, Kansas, and Oklahoma have either enacted or proposed bills related to state-managed Bitcoin reserves. However, other states such as Florida and Pennsylvania have faced hurdles, with their bills being either withdrawn or failing to progress.

Federally, the United States has seen mixed progress in terms of developing a national Bitcoin reserve. Former President Trump signed an executive order in March 2025 aiming to establish a U.S. Strategic Bitcoin Reserve using approximately 198,000 forfeited Bitcoin. Legal challenges, however, still impede its implementation. Moreover, Senator Cynthia Lummis has proposed a federal bill to purchase 1 million Bitcoin over a five-year period, demonstrating growing interest in Bitcoin reserves at a national level. Learn more about the U.S. Strategic Bitcoin Reserve Overview.

Current Regulatory Updates

As of now, HB 1155 awaits committee review in the South Dakota legislature. This stage marks its initial phase in the legislative process, where the bill will be scrutinized and debated before potentially advancing further. At the federal level, regulatory discussions surrounding Bitcoin and other digital assets continue, with Treasury Secretary Scott Bessent having noted budget-neutral methods for Bitcoin acquisition in August 2025, confirming no plans to sell any forfeited digital assets.

Recent developments also include the reintroduction of a federal bill by Senator Cynthia Lummis in March 2025 that calls for Bitcoin purchases to bolster a federal reserve. These efforts highlight the growing trend of integrating Bitcoin into strategic reserve portfolios, both at the state and federal levels, conveying a cautious yet progressive approach within the U.S. Explore more on the South Dakota’s SB127 commentary.

Security and Custodianship in Bitcoin Investment

The proposed HB 1155 bill in South Dakota also emphasizes the critical aspects of ensuring secure Bitcoin storage and management. It highlights advanced measures such as hardware encryption within geographically diverse data centers and regular audits or penetration testing, underscoring the necessity of safeguarding digital assets against potential threats. Additionally, by implementing multi-party approvals for transactions, the bill seeks to ensure an added layer of authorization and security.

This emphasis on security in cryptocurrency management reflects a broader trend that is gaining traction across various state proposals as well as federal initiatives. Secure custody provisions are crucial to gaining investor confidence and promoting wider acceptance of cryptocurrencies as viable reserve assets.For more information on the Bitcoin Reserve Race, click here.