South Dakota Lawmaker Takes Second Stab at Launching State Bitcoin Reserve

Representative Kirk Chaffee (R) has reintroduced legislation aimed at establishing a strategic Bitcoin reserve for the state of South Dakota. This move constitutes the lawmaker’s second consecutive attempt to create a legal framework allowing the State Treasurer’s office to purchase and hold Bitcoin within a state-managed trust fund.

The proposed bill seeks to amend existing statutes to classify Bitcoin as an admissible asset for strategic investment, similar to traditional reserve instruments. Proponents of the legislation argue that holding a small allocation of the world’s leading cryptocurrency would serve as a powerful hedge against fiat currency devaluation and provide long-term portfolio diversification for the state’s reserves.

A previous iteration of the bill, introduced in the last legislative session, ultimately failed to pass out of committee due to concerns regarding asset volatility, regulatory ambiguity, and the logistical challenges of state custody for digital assets. Lawmakers sponsoring the current effort have tailored the new measure to address some of the earlier criticisms, emphasizing conservative allocation limits and robust security protocols. The bill now faces critical committee review as proponents seek to persuade skeptical colleagues of Bitcoin’s role in future financial stability.

Source: South Dakota Lawmaker Takes Second Stab at Launching State Bitcoin Reserve