South Dakota has joined the growing list of U.S. states exploring Bitcoin as part of public finance. A new bill introduced in the state legislature by Republican lawmaker Logan Manhart could allow a 10% of government-managed funds to be invested in Bitcoin.
Once the House committee approves it, the bill goes to the full South Dakota House for final approval.
South Dakota Bill Allows Bitcoin Investment
According to a January 27, 2026, filing, Republican lawmaker Logan Manhart introduced House Bill 1155 in the South Dakota legislature. The proposal would allow the South Dakota Investment Council to invest up to 10% of eligible public funds into Bitcoin.
These funds include pensions, trusts, and endowments that together manage around $5 to $16 billion.
This is not South Dakota’s first attempt to bring Bitcoin into public investing. A similar proposal introduced in 2025 failed to pass committee review. However, interest has grown since then as inflation concerns and rising debt levels push governments to explore alternative stores of value.
If approved, the bill would give the state limited but direct exposure to Bitcoin as part of its long-term investment strategy.
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Strong Focus on Security and Controls
The bill places heavy emphasis on safety. It requires strict security rules for any Bitcoin held by the state. These include encrypted wallets, storage across separate locations, multi-person approval systems, and regular audits.
The proposal also allows Bitcoin exposure through regulated custodians or exchange-traded funds (ETFs). This gives the state flexibility to choose safer and more familiar investment structures rather than managing crypto directly.
The new bill follows moves by other states. Texas, Arizona, and New Hampshire already allow state-level Bitcoin holdings or investments, either through direct purchases or seized digital assets.
What Happens If the Bill Passes
If House Bill 1155 becomes law, South Dakota would need to build new systems to manage crypto investments. This includes choosing approved custodians, setting clear valuation methods, defining risk limits, and updating compliance rules to match existing investment policies.
These changes would take time, but supporters believe they could modernize public fund management.
If South Dakota moves forward, it could influence other states considering similar steps.
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FAQs
It’s a proposal allowing South Dakota to invest up to 10% of certain public funds, like pensions and trusts, into Bitcoin as a long-term asset.
Not necessarily. The bill allows exposure through secure custodians or regulated Bitcoin ETFs, reducing operational and custody risks.
States are exploring Bitcoin as a hedge against inflation, debt, and currency risk while diversifying long-term investment portfolios.
It mandates encrypted wallets, multi-signature approvals, geographic storage separation, audits, and strict oversight to protect public assets.
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