South Dakota Republican Rep. Logan Manhart has launched Home Invoice 1155, a proposal that might 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 obtainable 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 could possibly be held straight by the Funding Council by way 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.
Safety 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 least two geographically separated, safe places.
Transaction approvals would require multi-party governance, and techniques 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 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 might enable the State of South Dakota to put money into Bitcoin. Sturdy cash. Sturdy 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 tendencies in cryptocurrency adoption and monetary innovation.
Earlier this month, Rhode Island lawmakers launched 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 retaining easy data.
The exemption would take impact January 1, 2027, and expire January 1, 2028, as a pilot program to scale back tax friction on on a regular basis Bitcoin use.
New Hampshire is one other state actively championing Bitcoin. In Might 2025, New Hampshire grew to become 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 underneath Home Invoice 302. BTC presently qualifies underneath the market-cap rule.