TL;DR
- A South Dakota state lawmaker has reintroduced legislation that would allow the creation of a Bitcoin Reserve at the state level.
- The proposal authorizes up to 10% of certain public funds to be allocated to Bitcoin under existing investment oversight rules.
- The bill reopens debate as several US states already permit limited Bitcoin exposure, reinforcing the trend of treating digital assets as part of long-term public finance strategies.
A renewed legislative effort in South Dakota is bringing Bitcoin back into the spotlight for state-level public finance. Roughly one year after a similar proposal was deferred, a local lawmaker has revived a bill designed to allow limited Bitcoin exposure within the state’s investment framework.
Bitcoin Reserve Bill Reenters Legislative Discussion
Representative Logan Manhart has introduced HB 1155, a measure that would amend South Dakota law to permit the State Investment Council to invest up to 10% of eligible public funds in Bitcoin. The bill closely follows legislation he presented in 2025, which stalled during the legislative process and was not enacted.
The proposal does not compel immediate Bitcoin purchases. Instead, it expands the list of permissible assets, leaving allocation decisions to professional fund managers operating under existing risk and governance standards. Manhart framed the bill as an update to state investment policy, aligning it with changes already seen in broader financial markets.
If approved, South Dakota would join a limited group of US states that have enacted laws allowing Bitcoin exposure or the retention of seized digital assets. Texas, Arizona, and New Hampshire currently have statutes that enable such practices, while lawmakers in several other states continue to debate comparable initiatives.
Manhart, a Republican representing South Dakota’s First District, took office in January 2025. Since entering the legislature, he has consistently supported policies that emphasize diversification and long-term value preservation, positioning Bitcoin within that context rather than as a speculative instrument.
Bitcoin Reserve Debate Expands Across States
The state-level push unfolds as federal efforts around Bitcoin reserves remain constrained by legal and procedural hurdles. In March 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile. Unlike legislation passed by Congress, executive orders do not carry the same durability, limiting their immediate impact.
Patrick Witt, director of the White House Crypto Council, said in a January interview that unresolved legal provisions delayed implementation of the federal plan. The current framework centers on Bitcoin and other digital assets obtained through forfeiture cases, without explicit authority for direct market purchases.
Treasury Secretary Scott Bessent stated in August that budget-neutral approaches could allow the federal government to acquire Bitcoin, though no statutory pathway has been finalized. This gap has encouraged states to explore their own regulatory and investment options.
