South Dakota Lawmaker Revives Push to Establish State Bitcoin Reserve

PIERRE, SD – A Republican lawmaker in South Dakota has introduced a new bill aiming to establish a state-held reserve of Bitcoin (BTC), marking the latest attempt to diversify the state’s treasury holdings with digital assets. The measure is designed to hedge against federal monetary inflation and national debt risks by allocating a small, specified percentage of state funds toward the purchase and secure custody of the cryptocurrency.

This legislative action revives a concept that has been debated in Pierre for several sessions. Similar proposals introduced in prior years failed to pass crucial committee reviews, largely due to concerns over Bitcoin’s price volatility and the logistical challenges of state management of a decentralized asset.

The new bill proposes directing the State Treasurer’s office to explore and implement a strategy for acquiring BTC, stipulating strict custody requirements that would likely utilize qualified third-party financial institutions specializing in digital asset security. Proponents argue that while the asset is volatile, its potential for long-term appreciation and its nature as a non-fiat, deflationary store of value make it a necessary addition to the state’s investment portfolio.

Supporters emphasize that the legislation includes mandatory limitations on the total investment ceiling, ensuring that the state’s exposure to the asset remains minimal relative to its overall reserves. If passed, South Dakota would join a growing number of states and municipalities that are actively researching or implementing strategies to leverage digital assets for economic stabilization and financial innovation.

Source: South Dakota lawmaker revives bitcoin reserve push with new bill