South Dakota Republican Rep. Logan Manhart has launched Home Invoice 1155, a proposal that might allow the state to speculate public funds in Bitcoin.
The laws, formally filed within the a hundred and first Legislative Session, permits the State Funding Council to allocate as much as 10% of state funds obtainable for funding to BTC, marking a possible first for the state in adopting crypto as a part of its funding technique.
The bill outlines a number of choices for holding BTC safely. State funds might be held instantly by the Funding Council by means of a safe custody resolution, entrusted to a certified custodian, or acquired within the type of exchange-traded merchandise (ETPs) issued by registered funding firms.
Security is a central focus of the proposal. Any BTC held by the state would require a personal key completely managed by the Funding Council, saved in encrypted, hardware-secured environments throughout at the very least two geographically separated, safe places.
Transaction approvals would require multi-party governance, and methods would implement consumer entry controls and keep detailed audit logs.
Moreover, the invoice mandates common code audits, penetration testing, and catastrophe restoration protocols to make sure state belongings stay safe and accessible even within the occasion of system failures.
In asserting the invoice on X, Manhart said, “I’m proud to say I’ve launched my invoice that might 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 growing interest from U.S. states and municipalities in incorporating digital belongings into public portfolios, reflecting broader traits in cryptocurrency adoption and monetary innovation.
Earlier this month, Rhode Island lawmakers introduced Senate Invoice S2021 to briefly exempt small Bitcoin transactions from state earnings and capital features taxes, with a $5,000 month-to-month and $20,000 annual cap.
The invoice treats Bitcoin as a “digital, decentralized forex” and permits residents and Rhode Island–based mostly companies to self-certify eligibility whereas holding easy information.
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 became the primary U.S. state to permit its treasury to put money into Bitcoin and different large-cap digital belongings, authorizing as much as 5% of sure public funds to be allotted into crypto below Home Invoice 302. BTC at present qualifies below the market-cap rule.
