A proposal to create a Bitcoin reserve for South Dakota has been halted after House Bill 1202, introduced by Representative Logan Manhart, was deferred by the House Commerce and Energy Committee.
The bill aimed to allow the state to invest up to 10% of its total fund in Bitcoin, positioning South Dakota as the state with the largest Bitcoin reserves.
However, after 40 days, the committee decided to suspend the bill, citing concerns over Bitcoin’s price volatility and the lack of federal regulations.
Critics argued that using state funds for such an unpredictable asset posed significant financial risks. Some lawmakers also raised concerns about investing taxpayers’ money in a highly volatile digital currency amid ongoing regulatory uncertainty.
With HB 1202 no longer progressing this session, Representative Manhart plans to reintroduce the bill in 2026. This delay is not unique, as similar proposals in North Dakota and Montana have also been rejected.
Despite setbacks, interest in Bitcoin reserves remains strong. States such as Florida, Missouri, and Arizona are still considering related legislation.
Meanwhile, institutional investment in Bitcoin continues to grow, with MicroStrategy, now rebranded as Strategy, holding 499,096 BTC.
Currently, Bitcoin is valued at $91,948, reflecting a 4% decline in the last 24 hours, with a market capitalisation of $1.82 trillion.
