South Dakota Revisits Bitcoin Reserve Plan With New Bill

South Dakota has taken a significant step toward embracing Bitcoin (BTC) at the state level. According to a post on X, representative Logan Manhart has introduced a bill proposing the allocation of public funds into Bitcoin. The House Bill 1155, reflects a growing interest among U.S. lawmakers in utilizing digital assets as part of government investment portfolios.

Key Provision of South Dakota’s House Bill 1155

If enacted, House Bill 1155 would authorize South Dakota to allocate up to 10% of eligible state funds to Bitcoin. No doubt, this will provide the state with direct exposure to the world’s leading cryptocurrency.

The bill specifies multiple investment methods, including direct Bitcoin holdings, investment through qualified custodians, and exposure through regulated exchange-traded products (ETPs). Notably, the bill places emphasis on robust custody, security, and risk management protocols. 

This means, any Bitcoin held by the state must adhere to stringent security standards, including exclusive control over private keys, and encrypted hardware storage solutions. The bill also stipulates multi-party governance controls to prevent unilateral access. Additionally, it ensures that no single entity has sole authority over the state’s Bitcoin holdings.

Meanwhile, Manhart’s latest initiative comes almost a year after his initial Bitcoin reserve proposal failed. His earlier bill, House Bill 1002, aimed to include Bitcoin among South Dakota’s authorized state investments. However, it was blocked after being deferred to the legislature’s 41st day, surpassing the state’s 40-day legislative session limit.

Strategic Bitcoin Reserve Gains Momentum

Notably, the push for a Bitcoin reserve follows an executive order signed by President Donald Trump in March 2025. The signed order aims to establish both a strategic Bitcoin reserve and a digital asset stockpile using government-confiscated cryptocurrency assets. Treasury Secretary Scott Bessent confirmed that the agency is exploring “budget-neutral pathways” to develop the reserve without increasing overall spending. 

As such, the US lawmakers introduced legislation that marked a step toward creating a Bitcoin reserve and asset stockpile for the federal government. The bill outlined several areas for the Treasury’s assessment, including how digital assets would be accounted for in the government’s balance sheet.

Global Interest in Crypto Reserves Accelerates

The United States move aligns with similar efforts abroad. Florida lawmakers recently started considering the creation of a state-managed cryptocurrency reserve again. If House Bill 1039 passes, Florida would be able to invest in cryptocurrencies with clear risk controls. A key part of the bill is to set up a Strategic Cryptocurrency Reserve Fund. 

Similarly, Texas Governor Greg Abbott signed Senate Bill 21, officially creating the Texas Strategic Bitcoin Reserve. The fund will hold Bitcoin as a long-term financial asset for the state. Intriguingly, this move makes Texas the first U.S. state to commit public funds to a dedicated Bitcoin treasury.

With this legislative framework in place, Texas joins Arizona and New Hampshire as one of the only three U.S. states to establish a Bitcoin reserve law.