Catenaa, Tuesday, February 03, 2026–A South Dakota lawmaker introduced a bill on Tuesday that would allow the state to invest a portion of public funds in bitcoin, reviving an effort that stalled during the previous legislative session.
Republican Rep. Logan Manhart filed House Bill 1155, which proposes amending state investment statutes to permit the South Dakota State Investment Council to allocate up to 10% of eligible funds to bitcoin.
The measure allows exposure through direct holdings, qualified custodians, or regulated exchange-traded products.
The proposal outlines detailed custody and security standards for any state-held bitcoin.
Requirements include exclusive control of private keys, encrypted hardware storage, geographically distributed secure facilities, multi-party governance controls, and recurring security audits.
The bill received its first reading and was referred to the House Committee on Commerce and Energy, according to the official legislative journal.
House Bill 1155 closely mirrors legislation Manhart introduced during the 2025 session.
That earlier proposal sought to add bitcoin to the list of permissible state investments but failed to advance after being deferred beyond South Dakota’s 40-day legislative limit.
The renewed push comes as several US states weigh the use of digital assets as part of public reserve strategies.
Kansas and Florida lawmakers have advanced similar measures, while Arizona, Texas, and New Hampshire have enacted crypto reserve legislation.
At the federal level, the US government established a strategic bitcoin reserve last year following a March executive order signed by President Donald Trump.
The reserve is funded by bitcoin seized in criminal and civil cases and is restricted from liquidation under current law.
South Dakota lawmakers are expected to debate the proposal in committee in the coming weeks as states continue to assess crypto-related fiscal policy.
