The proposal includes strict custody and security rules for any state-held Bitcoin.

A South Dakota lawmaker has reintroduced legislation that would allow the state to invest a portion of its public funds in Bitcoin, reviving a proposal that stalled during last year’s legislative session.

The bill would allow exposure through direct holdings, qualified custodians, or regulated exchange-traded products.

South Dakota Bitcoin Bill Sets Strict Custody and Security Rules

“I am proud to say I have released my bill that would allow the State of South Dakota to invest in Bitcoin,” Manhart wrote in a post on X. “Strong money. Strong state.”

Lawmakers in Kansas and Florida have advanced similar proposals, while Arizona, Texas, and New Hampshire have already passed legislation allowing some form of crypto reserve strategy.

Supporters argue that Bitcoin could serve as a long-term hedge against inflation and currency debasement, while critics have raised concerns about price volatility and risk management.

Kansas Weighs Bitcoin Reserve Fund

As reported, lawmakers in Kansas are considering legislation that would create a state-managed Bitcoin and digital assets reserve funded entirely by unclaimed digital property already held by the state.

Senate Bill 352, introduced by Senator Craig Bowser, proposes establishing a reserve within the state treasury overseen by the Kansas state treasurer, without using taxpayer funds or direct cryptocurrency purchases.

Internationally, countries such as El Salvador and Bhutan have already taken more direct approaches, incorporating Bitcoin into national strategies through state holdings, mining initiatives, and development projects tied to digital assets.

View sources >> South Dakota Lawmaker Revives Bill to Allow State Bitcoin Investment