January 27, 2026 (State & Crypto Policy Report) — South Dakota State Representative Logan Manhart has introduced new legislation that would allow the state to invest a portion of its public funds in Bitcoin (BTC), marking his second attempt after a similar proposal stalled in the 2025 legislative session.
The bill, formally filed as House Bill 1155 (HB 1155), would permit the South Dakota State Investment Council to allocate up to 10 % of public funds available for investment into Bitcoin, expanding the state’s investment strategy to include digital assets alongside traditional securities if lawmakers approve.
Renewed Push After Previous Setback
Last year, Rep. Manhart introduced a similar Bitcoin reserve proposal — House Bill 1202 — which aimed to allow up to 10 % of state funds to be invested in Bitcoin. However, that bill was deferred by the House Commerce and Energy Committee and did not progress before the session ended. Manhart had said at the time he intended to reintroduce the effort in 2026.
Manhart announced the renewed legislation on his social media account, writing “Strong money. Strong state.” in reference to Bitcoin’s perceived value and stability as a long-term asset.
Details of the Bitcoin Reserve Proposal
HB 1155 closely mirrors the previous proposal, allowing the state’s Investment Council to invest in Bitcoin directly or through qualified custody solutions, including regulated exchange-traded products (ETPs), subject to existing risk governance standards.
Under the bill’s framework:
- The State Investment Council would maintain custody and governance controls.
- Bitcoin exposure could be direct or through third-party custodians or ETPs.
- Investment decisions would fall under professional fund management and oversight.
If enacted, South Dakota would join a small but growing group of U.S. states exploring or adopting Bitcoin treasury frameworks. States such as Texas, Arizona, and New Hampshire have enacted laws permitting Bitcoin or digital asset holdings, though the exact provisions differ by jurisdiction.
Growing Trend at State Level
The renewed effort in South Dakota comes amid a broader wave of state-level cryptocurrency reserve discussionsacross the United States. Several states have introduced similar bills aimed at diversifying public funds and hedging against inflation through Bitcoin exposure, while others have faced setbacks or revisions in committee reviews.
New Hampshire became the first state to allow its treasury to invest in Bitcoin and other large-cap digital assets under a 2025 law, setting a precedent for other states considering similar measures.
Next Steps and Legislative Outlook
HB 1155 must now be reviewed in committee and gain approval from both chambers of the South Dakota Legislature before being sent to the governor’s desk. Lawmakers are expected to debate the merits and risks of integrating a volatile asset like Bitcoin into the state’s investment portfolio, including considerations around custody, volatility, liquidity, and long-term financial strategy.
If successful, the bill would mark a significant step for state-level cryptocurrency adoption and could influence similar proposals nationwide.
Also Check: BitMine Boosts Ethereum Holdings to 4.24M ETH, Now Controls 3.52% of Supply
