South Dakota State Representative Logan Manhart has submitted a Bitcoin-focused investment bill for the January 2026 legislative session, indicating a growing interest in digital assets at the state level. The measure, HB 1155, would allow the South Dakota State Investment Council to invest up to 10% of public monies in Bitcoin.
This idea comes after the collapse of HB 1202, a similar effort in 2025 that was successfully stalled in the House. Unlike its predecessor, the revised law incorporates stronger security requirements and greater investment flexibility, following lessons from previous debates.
As of January 28, 2026, HB 1155 was still under consideration in the South Dakota legislature.
What HB 1155 Proposes
HB 1155 seeks to amend South Dakota state code by adding Bitcoin as a permissible investment asset for the State Investment Council, placing it alongside traditional securities such as stocks and bonds.
Importantly, the bill does not mandate any Bitcoin investment. Instead, it grants the Council the option to allocate funds at its discretion, allowing professional managers to decide whether Bitcoin fits the state’s broader investment strategy.
Security and Custody Protections
One of the most notable updates in HB 1155 is its emphasis on robust security protocols. The bill outlines strict custody requirements, including:
- Multi-party governance to prevent unilateral control
- User access controls to reduce internal risk
- Encrypted hardware storage
- Geographically diversified storage locations
- Exclusive control by the State Investment Council
These measures are designed to address common concerns around digital asset custody and operational risk.
Investment Options Available
HB 1155 would provide the state more control over how Bitcoin exposure is achieved. Investment opportunities include:
- Direct holding of Bitcoin by the Investment Council
- Use of a qualified custodian
- Exposure through exchange-traded products (ETPs)
This framework enables the Council to select ways that best meet risk management, liquidity requirements, and operational capabilities.
Part of a Broader State-Level Trend
South Dakota’s fresh efforts are not occurring in isolation. States like Texas, Arizona, and New Hampshire have already passed legislation allowing the state to invest in Bitcoin or hold seized cryptocurrency.
This expanding tendency indicates that digital assets are being accepted as acceptable components of public-sector investment and asset management plans.
Advantages of HB 1155
1. Portfolio Diversification
Bitcoin could provide diversification benefits alongside traditional assets.
2. Optional, Not Mandatory
The bill empowers professionals without forcing exposure.
3. Strong Security Framework
Enhanced custody protections address key operational risks.
4. Strategic Positioning
Positions South Dakota alongside states embracing digital asset innovation.
Disadvantages and Risks
1. Market Volatility
Bitcoin’s price volatility could impact public fund stability.
2. Public Perception Risk
Taxpayer concerns may arise around crypto exposure.
3. Regulatory Uncertainty
Despite progress, digital asset regulation continues to evolve.
4. Operational Complexity
Custody, compliance, and oversight require specialized expertise.
What Happens Next?
HB 1155 is now under legislative study. If adopted, it would represent a dramatic departure in South Dakota’s approach to public fund investment, giving the state optional access to Bitcoin while maintaining institutional safeguards.
Frequently Asked Questions (FAQ)
What is HB 1155?
HB 1155 is a bill that would allow South Dakota’s State Investment Council to invest up to 10% of public funds in Bitcoin.
Is the state required to buy Bitcoin?
No. The bill only provides the option—it does not mandate any investment.
How would Bitcoin be stored securely?
The bill includes multi-party governance, encrypted hardware storage, geographic distribution, and exclusive control by the Investment Council.
Can the state use ETFs or custodians?
Yes. Investments could be made directly, via a qualified custodian, or through exchange-traded products (ETPs).
What is the current status of the bill?
As of January 28, 2026, HB 1155 is under consideration in the South Dakota legislature.
