South Dakota is considering a new legislative measure that would enable the state to allocate public funds into Bitcoin investments.
Republican Representative Logan Manhart has put forward House Bill 1155 during the 101st Legislative Session, proposing that South Dakota’s State Investment Council be authorized to invest up to 10% of its available investment capital in Bitcoin. This initiative could mark a pioneering step for the state by integrating cryptocurrency into its official investment portfolio.
The bill provides several secure methods for managing Bitcoin holdings. These include direct custody by the Investment Council using robust security solutions, entrusting assets to certified custodians, or purchasing exchange-traded products (ETPs) managed by registered investment firms.
A strong emphasis on security underpins this proposal. Any Bitcoin owned by the state must have private keys controlled solely by the Investment Council and stored within encrypted hardware wallets located in at least two geographically distinct and secure facilities.
Transaction authorizations will require multi-party approval processes, with strict user access controls and comprehensive audit trails maintained throughout all operations.
Furthermore, regular code reviews, penetration testing exercises, and disaster recovery plans are mandated to safeguard these digital assets against potential threats or system failures while ensuring continuous accessibility.
Representative Manhart expressed his enthusiasm on social media platform X: “I am proud to announce my bill allowing South Dakota to invest in Bitcoin — strong money for a strong state.”
The Growing Embrace of Bitcoin Among U.S. States
This legislation reflects an increasing trend among U.S. states and local governments toward incorporating cryptocurrencies into their financial strategies as part of broader innovation efforts within public asset management.
For example, Rhode Island recently introduced Senate Bill S2021 aimed at temporarily exempting small-scale Bitcoin transactions from income and capital gains taxes up to $5,000 monthly or $20,000 annually. The bill classifies Bitcoin as a “digital decentralized currency” permitting residents and businesses based in Rhode Island to self-certify eligibility while maintaining straightforward records.
This tax exemption pilot program is scheduled from January 1st, 2027 through January 1st, 2028 with goals focused on reducing taxation barriers related to everyday cryptocurrency use.
Similarly active is New Hampshire which made headlines in May 2025 when it became the first U.S. state treasury authorized under House Bill 302 to invest up to five percent of certain public funds into large-cap digital currencies such as Bitcoin — qualifying under market capitalization criteria set forth in legislation.
JUST IN: South Dakota introduces bill allowing investments in bitcoin
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This article titled “South Dakota Proposes Bill Allowing State To Invest In Bitcoin” originally appeared on Bitcoin Magazine, authored by Micah Zimmerman.