David Edwards
In a major step toward recognizing Bitcoin as a state asset, South Dakota is ready to debate a historic law that would add the cryptocurrency to its financial reserves.
State Representative Logan Manhart announced the initiative on X, stating, “I am proud to say I will be bringing a bill in the South Dakota House that would create a strategic Bitcoin reserve. This is one of the rare opportunities the government has to take the initiative. Nevertheless, no precise date for the bill’s presentation has been revealed.
This action is in line with a larger trend of states in the US adopting Bitcoin. Similar legislation has been submitted or is being prepared in at least a dozen states, including Texas, Florida, Pennsylvania, Ohio, and Arizona. In November 2024, Pennsylvania took the lead, and in December, Florida, Texas, and Ohio did the same. Additionally, proposals for Bitcoin reserves had been submitted by North Dakota, New Hampshire, Oklahoma, Massachusetts, Wyoming, and Utah by January 2025.
With the recent passage of the first stage of a bill that would allow the allocation of up to 10% of public assets into Bitcoin reserves, Arizona has made the most progress.
The pro-crypto stance of President Donald Trump has had a significant impact on the increasing acceptance at the state level. In order to position the United States as a global leader in cryptocurrency, Trump pledged throughout his November campaign to create a national Bitcoin reserve. When he issued an executive order last week establishing the Presidential Working Group on Digital Asset Markets, that ambition took a concrete step forward. Together with other digital asset regulations, the committee, headed by the White House Crypto & AI Czar, is assessing the viability of a national Bitcoin reserve.
One of the initiative’s primary advisors, David Sacks, recently said of the possible reserve, “Yeah, we’re going to evaluate that.” We need to research that, but we haven’t made up our minds yet.
International interest is growing as state-led Bitcoin efforts gain momentum. Similar reserve plans are being aggressively investigated by nations including Brazil, Japan and Poland, highlighting Bitcoin’s growing importance in international banking.
