South Dakota could Invest Up To 10% Of Funds In Bitcoin

South Dakota lawmakers are once again weighing whether Bitcoin should play a role in the management of the state’s public investment portfolio, as Republican Representative Logan Manhart reintroduced legislation that would allow a meaningful allocation of state funds into the digital asset. 

Filed on 27 January 2026 as House Bill 1155, the proposal would amend South Dakota’s public investment statutes to permit the State Investment Council to allocate up to 10 per cent of eligible funds into Bitcoin. The bill closely mirrors a similar measure Manhart sponsored during the 2025 legislative session, which ultimately stalled when it was deferred before reaching a vote. 

Manhart has described Bitcoin as “strong money” suitable for a “strong state,” framing the initiative as part of a long‑term financial strategy. The text of the bill sets out stringent custody and security requirements for any state‑held Bitcoin, including provisions for encrypted storage, multi‑party governance controls, and the use of qualified institutional custodians or regulated products. 

Supporters argue that a limited allocation to Bitcoin could diversify the state’s investment portfolio and potentially provide a hedge against inflation and currency risks. They point to states like New Hampshire and Texas, which have passed laws enabling some form of Bitcoin reserve, as precedents for incorporating digital assets into public finance frameworks. 

However, critics caution that Bitcoin’s price volatility and lack of traditional yield could pose risks to taxpayer‑backed funds. During the previous legislative cycle, opponents cited these concerns as a key reason for the bill’s failure to advance. Oversight and risk management structures for such investments remain central to the debate. 

As HB 1155 moves through committee review, South Dakota would join a growing cohort of U.S. states examining the role of Bitcoin within public investment portfolios. The outcome could influence ongoing discussions about digital assets and sovereign finance in other jurisdictions.