# South Dakota Contemplates Bitcoin Allocation to Counter Inflation
South Dakota State Representative Logan Manhart has lately initiated actions to incorporate Bitcoin (BTC) into the state’s overall investment approach. On January 30, Manhart presented two fresh pieces of legislation: House Bill 1202 (HB 1202) and House Concurrent Resolution 6006 (HCR 6006).
HB 1202 suggests assigning 10% of the state’s public finances to Bitcoin. As of June 30, 2024, South Dakota’s overall funds totaled $16.6 billion. This substantial sum would enable the state to make a potential investment of over $8 billion in Bitcoin. HB 1202 also specifies that only authorized establishments, such as federally or state-approved banks or trust firms, would be permitted to hold the acquired Bitcoin.
Furthermore, the bill indicates that state government funds can be invested through exchange-traded products (ETPs) overseen by the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, or the South Dakota Division of Banking.
To guarantee safe management, the bill approves the creation of a multi-signature governance framework, encrypted storage setups, and geographically distributed secure data centers for managing private keys.
The second piece of legislation, HCR 6006, urges the State Investment Council to contemplate Bitcoin as a strategic instrument for safeguarding against inflation and economic instability. The resolution acknowledges Bitcoin’s $1 trillion market valuation, its expanding function as an international means of exchange, and its inclusion in the fiscal reserves of sovereign countries, including the United States.
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Manhart initially vowed on January 28 to introduce Bitcoin reserve legislation, rendering South Dakota the 13th state in the U.S. to pursue a Bitcoin strategic reserve.
Dennis Porter, the co-creator and chief executive officer of the Satoshi Action Fund, pointed out that analogous legislative proposals are anticipated to be presented in 15 states in the near future. Bitcoin reserve measures have already been put forward by Pennsylvania, Texas, Ohio, New Hampshire, and North Dakota.
