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.
