South Dakota lawmakers are reviving a stalled proposal to allow state investment in Bitcoin, reigniting debate over risk, volatility, and public funds in 2026.
Jan 30, 2026
South Dakota, the crypto heard you loud and clear. In the land of the prairies and Mount Rushmore, now we have politicians that want to deem digital gold as something that belongs in your personal piggy bank. Representative Logan Manhart has taken the initiative to dust off a previous bill, namely the House Bill 1155. Yes, a very memorable name.
This proposal would allow the State Investment Council to pour up to 10% of the public funds into Bitcoin. Oh yes. This includes your pensions, your teacher’s retirement funds, among other attributes.
Relax – this does not mean that Bitcoin ATMs are going to start spawning around every corner. However, a slice of those pension funds and trust accounts could live and invest into Bitcoin directly, preferably through regulated exchanges.
This bill is going to incorporate encrypted hardware wallets, multi-party governance, and of course audits. So… in translation, they have no idea if this is going to end well. But why not try it, the economy is already in shambles!
Why Supporters Are Suddenly Very Confident This Time
If this is beginning to sound familiar, you are not going crazy nor is this any sort of Mandela Effect situation. Manhart previously attempted to propose this same exact bill in 2025. It quietly went back into its cage, and all forgot about it overnight it seemed. Apparently, he gets revival rights.
Just picture it as a reboot of a franchise with a corny tagline. Here, I can paint it for you now: Strong money. Stronger state…
We can work on that.
Supporters have the belief that Bitcoin is their answer to growing inflation, as well as diversifying state funds. Now, Manhart has insisted that this is in no way deemed as “gambling.” It is closer to financial innovation.
You know. If you find risking a retirement fund on something that could spike by 60% one day, and then drop 30% as innovative. Have at it, South Dakota!
Now… What do critics think about this? Oh, they are very much panicking. They are warning everyone about how this incorporation of Bitcoin could be the cause of potential losses and massive headaches for the state. They firmly believe that this could end in disaster.
It certainly is bold – but is it smart?
South Dakota is not the first state to flirt with this idea, actually. Others, such as Texas, New Hampshire, and Arizona are interested in similar ideas. Texas has even already bought Bitcoin!
HB1155 is now facing a plethora of hearings and votes as it awaits the governor’s fancy signature. So either it gets passed quietly or leaves just as it did last time. If this does end up not getting passed, then I am sorry that you read this for nothing. We will just have to wait and see.
However, if it does fail, Manhart is not looking to just move on. As we know, failure in politics is merely delayed success.
So here we are. South Dakota is window shopping and wondering if it should pass on Bitcoin or just bite the bullet and go for it. Now, it remains in that awkward stage of wondering if this time will be different, or just a waste of time.
The bill has been revived as the talking stages are all shiny and polished. Supporters insist this is a grand step when it comes to financial innovation. With the belief that modernizing these state finances and remaining a player in an already competitive economy, there is no certainty on whether or not this gets passed. Only time will tell.
Critics, on the other hand, have remained grounded as they warn everyone on how wild and unpredictable Bitcoin can be. It is quite literally known for its dramatic mood swings. One minute you are on top of the world, next you are plummeting thousands of feet down with no access to a parachute. What makes this even scarier for the public is how both sides are incredibly correct in their stances.
Will it pass? Maybe? Will it quietly fail and retreat back into the shadows as it did last year? Also very possible. South Dakota is flirting with the dangers of Bitcoin and crypto, and that alone cannot be denied.
Until then, buckle up. The state treasury is not too far off from getting a taste of that digital adrenaline.
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