South Dakota lawmakers have effectively blocked a bill that would have permitted the state to invest in Bitcoin. During a House Commerce and Energy Committee meeting, legislators voted to defer House Bill 1202 to the 41st day of the session, a procedural move that ensures its failure since the legislative session only lasts 40 days. The bill, introduced by Representative Logan Manhart, sought to amend the state’s public funds classification to allow up to 10% investment in Bitcoin.

Despite the setback, Manhart has stated that he plans to reintroduce the bill in 2026. South Dakota’s attempt follows similar initiatives in other states, including North Dakota, Montana, and Wyoming, which also failed to pass Bitcoin reserve bills. However, states like Florida, Arizona, and Kentucky are still considering legislation related to Bitcoin investments. These efforts reflect a broader trend among U.S. states exploring digital assets as part of their financial strategies.

The push for state-level Bitcoin reserves gained momentum following U.S. President Donald Trump’s proposal to establish a national Bitcoin stockpile. In a recent executive order, Trump suggested forming a working group to study the feasibility of such a reserve. However, legal challenges have emerged regarding the constitutionality of many of his executive actions, casting uncertainty over their implementation.

With the SEC recently closing investigations into some crypto firms, regulatory sentiment in the U.S. appears to be shifting. While South Dakota’s bill failed, the broader discussion on Bitcoin as a state-held asset continues across the country. The increasing interest from lawmakers indicates that digital assets could still play a role in state-level financial strategies in the coming years.

A crypto analyst has expressed strong bullish sentiment on Ethereum (ETH), citing a highly favorable risk-reward ratio. The analysis highlights that ETH is only 18% above its 200-week exponential moving average (EMA), a level historically associated with price rebounds. The potential upside for ETH is estimated at 200%, with a worst-case drawdown of just 20%. Additionally, technical indicators, including an ascending channel and a liquidity cluster above $4,000, suggest that the price could be gearing up for a significant breakout.

Further on-chain data from Glassnode supports this outlook, revealing strong accumulation at key price levels. Investors have been purchasing ETH heavily around $2,632, with a larger cluster at $3,150, indicating confidence in further price appreciation. This trend suggests that rather than exiting positions, market participants are averaging down, reinforcing the bullish narrative.

Meanwhile, analysts point to Ethereum’s increasing buy pressure compared to Bitcoin. On-chain data from CryptoQuant shows ETH’s taker buy-sell ratio rising while BTC’s declines, signaling stronger buying momentum for ETH. Historically, such trends have allowed ETH to outperform Bitcoin in the short term. However, technical risks remain, with a need to maintain support above $2,600 to avoid a shift in market sentiment.

Despite short-term volatility, ETH’s overall market structure appears robust, with analysts predicting new highs in the coming months. The current accumulation phase and liquidity positioning indicate that Ethereum may see a significant upward move if key resistance levels are broken. However, investors remain cautious, monitoring broader market conditions and potential bearish signals.

The U.S. Securities and Exchange Commission (SEC) continues to engage with crypto firms over regulatory issues under its new leadership. Recent meetings between the SEC’s crypto task force and industry representatives, including advocacy groups and executives, suggest a shift in the agency’s approach. Some believe the SEC may be reconsidering its stance on whether cryptocurrencies should be classified as securities.

The meetings follow the SEC’s decision to drop its investigation into Robinhood Crypto and OpenSea. There is also speculation that the commission may end its enforcement action against Coinbase. The discussions, led by Commissioner Hester Peirce, signal potential regulatory changes that could provide clearer guidelines for digital assets.

Peirce has called for public input on creating a regulatory framework that might exclude certain crypto projects from being classified as securities. Some within the industry are advocating for a “regulatory sandbox” that would allow projects to operate under limited oversight before being fully regulated. This approach aims to provide innovation-friendly policies while ensuring compliance with financial laws.

With no confirmed SEC chair yet, the agency’s direction remains uncertain. Acting Chair Mark Uyeda is leading discussions, but the Senate has yet to confirm a permanent head, with former Commissioner Paul Atkins considered a likely candidate. The evolving regulatory landscape suggests the SEC may be open to more industry-friendly policies under the current administration.