South Dakota Republican Rep. Logan Manhart has launched Home Invoice 1155, a proposal that will allow the state to take a position public funds in Bitcoin.
The laws, formally filed within the one hundred and first Legislative Session, permits the State Funding Council to allocate as much as 10% of state funds accessible for funding to BTC, marking a possible first for the state in adopting crypto as a part of its funding technique.
The invoice outlines a number of choices for holding BTC safely. State funds might be held straight by the Funding Council by a safe custody resolution, entrusted to a professional custodian, or acquired within the type of exchange-traded merchandise (ETPs) issued by registered funding firms.
Safety is a central focus of the proposal. Any BTC held by the state would require a personal key solely managed by the Funding Council, saved in encrypted, hardware-secured environments throughout at the least two geographically separated, safe places.
Transaction approvals would require multi-party governance, and techniques would implement consumer entry controls and preserve detailed audit logs.
Moreover, the invoice mandates common code audits, penetration testing, and catastrophe restoration protocols to make sure state property stay safe and accessible even within the occasion of system failures.
In asserting the invoice on X, Manhart mentioned, “I’m proud to say I’ve launched my invoice that will enable the State of South Dakota to put money into Bitcoin. Robust cash. Robust state.”
U.S. states are beginning to love bitcoin
The proposal comes amid rising curiosity from U.S. states and municipalities in incorporating digital property into public portfolios, reflecting broader traits in cryptocurrency adoption and monetary innovation.
Earlier this month, Rhode Island lawmakers launched Senate Invoice S2021 to quickly exempt small Bitcoin transactions from state revenue and capital good points taxes, with a $5,000 month-to-month and $20,000 annual cap.
The invoice treats Bitcoin as a “digital, decentralized foreign money” and permits residents and Rhode Island–primarily based companies to self-certify eligibility whereas preserving easy data.
The exemption would take impact January 1, 2027, and expire January 1, 2028, as a pilot program to cut back tax friction on on a regular basis Bitcoin use.
New Hampshire is one other state actively championing Bitcoin. In Could 2025, New Hampshire turned the primary U.S. state to permit its treasury to put money into Bitcoin and different large-cap digital property, authorizing as much as 5% of sure public funds to be allotted into crypto beneath Home Invoice 302. BTC at present qualifies beneath the market-cap rule.
