South Dakota Lawmaker Proposes Bitcoin Reserve Investment
A renewed effort to integrate cryptocurrency into state investment strategies is underway in South Dakota. State Representative Logan Manhart has reintroduced a bill that seeks to allocate up to 10% of the state’s investment funds in Bitcoin, either through direct holdings or exchange-traded products.
Why South Dakota is Turning to Bitcoin
The proposal, House Bill 1155, comes as the South Dakota Investment Council faces underwhelming returns. With $20.56 billion in assets under management, their recent report showed a 5.5% return, significantly below their 12.5% benchmark. Investing in Bitcoin could provide a diversified hedge and capitalize on the potential growth of digital assets.
Manhart tweeted, “Strong money. Strong state,” emphasizing his belief in Bitcoin as a method to bolster the state’s financial future. He’s joined by other lawmakers nationwide as interest in state-backed crypto reserves continues to grow. According to Bitcoin Laws, legislation for Bitcoin reserves has been proposed in nearly 30 states, though many attempts have faltered during initial readings.
The National Bitcoin Reserve Movement
South Dakota isn’t alone in pursuing crypto-backed reserves. Arizona, New Hampshire, and Texas are three states that have successfully passed legislation allowing Bitcoin as part of their investment portfolios. However, implementation has been limited.
For example, Texas has only purchased $5 million worth of Bitcoin out of their allowable $20 billion. New Hampshire permits up to 5% of funds to be allocated in digital assets with a market cap exceeding $500 billion, effectively restricting investments to Bitcoin. Meanwhile, Arizona has made strides by passing laws exempting digital currency from property taxes.
Crypto Entering the Mainstream
The push for Bitcoin reserve funds aligns with President Donald Trump’s open embrace of cryptocurrency during his recent administration. Prominent figures—including Tesla CEO Elon Musk and lawmakers such as Manhart—have publicly supported the transition to digital finance. This momentum further solidifies Bitcoin’s status as a viable and secure asset for governmental investments.
Looking Ahead: What This Means for Crypto Investors
The inclusion of cryptocurrencies like Bitcoin in government reserves signals an increasing mainstream acceptance of blockchain technology. For investors, this confirms the growing legitimacy of Bitcoin as a safe and valuable asset.
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