South Dakota Representative Logan Manhart made two new legislative proposals on Jan. 30 aimed at incorporating Bitcoin (BTC) into the state’s investment strategy.Â
House Bill 1202 (HB 1202) would allow the state to allocate 10% of its public funds to Bitcoin. Meanwhile, House Concurrent Resolution 6006 (HCR 6006) urges the State Investment Council to explore Bitcoin as a hedge against inflation.
As of June 30, 2024, South Dakota funds had $16.6 billion, which would allow a state investment in Bitcoin of up to over $8 billion.
HB 1202 also establishes that qualified institutions, such as a federally or state-chartered bank or trust company, should have custody of the acquired Bitcoin.
Additionally, state funds can invest through an exchange-traded product (ETP) regulated by the US Securities and Exchange Commission, the Commodity Futures Trading Commission, or the South Dakota Division of Banking. Â
The bill also mandates multi-party governance structures, encrypted storage environments, and geographically distributed secure data centers for private key management.
While HB 1202 establishes the framework for Bitcoin as a formal state investment, HCR 6006 takes a different approach. It encourages South Dakota’s State Investment Council to explore Bitcoin as a strategic hedge against inflation and broader economic uncertainty. Â
The resolution highlights Bitcoin’s $1 trillion market capitalization, its growing role as an international medium of exchange, and the fact that sovereign nations, including the U.S., already hold Bitcoin within their treasury reserves.
Manhart initially promised to introduce the legislation for a Bitcoin reserve on Jan. 28.
13 US states
South Dakota became the 13th US state to pass legislation establishing a strategic Bitcoin reserve. According to Dennis Porter, co-founder and CEO of the Satoshi Action Fund, 15 states will soon introduce similar bills.
Several other states have also seen Bitcoin reserve bills introduced recently, such as Pennsylvania, Texas, Ohio, New Hampshire, and North Dakota.
If Kentucky Representative TJ Roberts fulfills his promise to introduce a Bitcoin reserve bill in the first week of his return to the General Assembly, only one state will remain to satisfy Porter’s vow.
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