A South Dakota lawmaker has once again introduced a bill that would allow the state to invest some of its public money in bitcoin. The proposal is called House Bill 1155 and it would let the state put up to 10% of certain investment funds into bitcoin. A similar proposal failed last year.

The bill was introduced by Republican State Representative Logan Manhart. This is the second attempt to pass bitcoin investment legislation after an earlier effort did not move forward in the state legislature.
“I am proud to say I have released my bill that would allow the State of South Dakota to invest in Bitcoin,” Manhart wrote on X. “Strong money. Strong state.”

House Bill 1155 would change South Dakota’s investment laws so bitcoin could be treated like other approved assets, such as government bonds or exchange-traded funds. If the bill becomes law, the State Investment Council would be allowed to invest up to 10% of eligible state funds in bitcoin.

The bill gives the state several ways to gain bitcoin exposure. South Dakota could:

These options are meant to provide flexibility while keeping oversight in place.

South Dakota’s investment funds help pay for important public services, including education, healthcare, and retirement systems. The state manages more than $20 billion in assets. Last year, those investments earned a return of about 5.5%, which was well below the state’s target.

Supporters of the bill believe bitcoin could help diversify the state’s investments and possibly improve long-term performance.

One of the main focuses of House Bill 1155 is security. The bill includes detailed rules for how any bitcoin owned by the state must be protected.

Under the proposal, private keys used to access the bitcoin must be stored in encrypted, hardware-based systems. Only the State Investment Council would have control over those keys, and all access would take place through secure, encrypted channels.

The bill also requires bitcoin storage systems to be spread across at least two separate, secure data centers in different locations. This is meant to reduce the risk of loss, hacking, or system failure.

In addition, the bill calls for multi-party governance, meaning no single person could move funds alone. All actions would be tracked and recorded. Custody providers would also need disaster recovery plans and regular security audits.

Manhart introduced a similar Bitcoin bill in 2025. That proposal was sent to the House Commerce and Energy Committee, where lawmakers voted to delay it, “deferred to the 41st legislative day,” beyond South Dakota’s 40-day legislative session. This procedural move effectively killed the bill.

The new version of House Bill 1155 is nearly identical to the earlier proposal, with only small changes to the legal language. The bill has already received its first reading and has once again been sent to the Commerce and Energy Committee.