In a Feb. 24 meeting of the South Dakota House Commerce and Energy Committee, lawmakers effectively killed a measure that would have enabled the state to invest in Bitcoin (BTC). The committee voted to defer HB 1202 to the 41st day of the legislative session, making the bill invalid since the legislature only meets for up to 40 days a session.
South Dakota’s decision follows a similar outcome in Montana, where lawmakers shot down a Bitcoin reserve bill in a 41-59 vote last week.Â
Manhart pledges to revive Bitcoin investment bill despite opposition
The legislation, filed on Jan. 30 by State Representative Logan Manhart, would have amended the classification of South Dakota’s public treasury funds to allow for up to 10% to be held in Bitcoin.
As cited in the South Dakota Public Broadcasting report, Manhart described the bill as a pragmatic update to South Dakota’s investment strategy by allowing a limited allocation of state funds into alternative assets that have consistently proven to preserve value, particularly in inflationary environments.
Matt Clark, South Dakota’s State Investment Officer, raised concerns about Bitcoin’s volatility and lack of intrinsic value.Â
Clark said that Bitcoin does not have any underlying physical use and does not generate income, much like commodities or other kinds of assets.
He pointed out that although Bitcoin can theoretically be incorporated into state investments in the future, given the present level of market uncertainty, changing the law at this time and passing the bill would only result in more uncertainty.
Not giving up, Manhart wrote on X that he plans to bring back the legislation in 2026.
South Dakota is not the only state that has explored Bitcoin investments. Other states, including North Dakota, Montana, and Wyoming, have seen similar attempts to establish Bitcoin reserves go nowhere. However, lawmakers in Florida, Arizona, Utah, Ohio, Missouri, and Kentucky have introduced legislation that, at the time of publication, was still moving through local governments.
The drive for Bitcoin-related state laws comes alongside much talk on the federal level. US President Donald Trump has been in office since Jan. 20 and has indicated a departure from the previous administration’s crypto approach.
His administration has proposed creating a strategic national Bitcoin stockpile; a Jan. 23 executive order called for a working group to evaluate whether such a plan is viable.
Yet, several of Trump’s executive orders, crypto-related or otherwise, have been the subject of legal challenges. The US Securities and Exchange Commission has already dropped investigations into some crypto firms — even reportedly closing its case against crypto exchange Coinbase, which it filed in 2023.
Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
