South Dakota Lawmaker Takes Second Stab at Launching State Bitcoin Reserve

In brief

• Representative Logan Manhart submitted a bill to introduce Bitcoin holdings into the state’s investment funds this week.
• Manhart’s move comes nearly a year after his first attempt to establish a reserve was shut down.
• Lawmakers in nearly 30 states have introduced Bitcoin reserve-related legislation, though most efforts have failed.

South Dakota lawmaker Logan Manhart made a renewed attempt on Tuesday to introduce Bitcoin holdings into the state’s investment funds, following a previous proposal that was shot down in February last year. “Strong money. Strong state,” the Republican State Representative tweeted.

I am proud to say I have released my bill that would allow the State of South Dakota to invest in Bitcoin.

Strong money. Strong state.

— Logan Manhart (@ManhartLogan) January 27, 2026

House Bill 1155 would permit the state to invest up to 10% of its investment funds in Bitcoin, either held directly or through an exchange-traded product. The proposal comes as South Dakota’s investment funds—which support services such as education, healthcare, and retirement systems—continue to underperform. With $20.56 billion in assets under management, the South Dakota Investment Council reported a return of 5.5% last year, well below its 12.5% benchmark, according to its 2025 annual report. More than half of the portfolio is currently allocated to public equities, with smaller portions invested in areas such as real estate and debt. Spurred on by President Donal Trump’s embrace of crypto, multiple states have moved to introduce their own crypto reserve bills, often backed by pro-Trump lawmakers such as Manhart. 

Bills have been submitted in 28 states, according to Bitcoin Laws’ strategic reserve tracker. However, most have failed to gain traction. A total of 33 have been killed, most at the first committee reading stage. Nine proposals in six states remain ongoing. Manhart himself first introduced a Bitcoin reserve bill in January last year, tagging Donald Trump and Elon Musk in a social media post announcing the proposal. That bill was read in February and referred to the House Commerce and Energy Committee, which voted 9–3 to “defer to the 41st legislative day.” The maneuver is used in South Dakota’s 40-day legislative sessions to kill a bill by postponing consideration until after the session ends. Bitcoin state reserves in the U.S. To date, only three states—Arizona, New Hampshire, and Texas—have enacted Bitcoin reserve legislation. But implementation has been limited. In Arizona, proposals for a full strategic reserve have been repeatedly blocked by the governor’s office, with only a reserve for seized provisions enacted in May last year. New Hampshire allows up to 5% of funds to be invested in digital assets with a market cap of over $500 billion, meaning only Bitcoin qualifies. It is not clear if the state has actually purchased any Bitcoin yet, although it does plan to release a Bitcoin-backed bond later this year. And in Texas, while the state can invest up to 5% of state funds into Bitcoin, it has so far only bought $5 million worth. Other states have also advanced pro-crypto legislation this month. In Arizona, the Senate Financial Committee voted 4-3 this week to advance Senate Bill 1044, exempting virtual currency from property taxes. Kansas has also introduced a bill for its own strategic reserve.