"The bill outlines multiple options for holding BTC safely. State funds could be held directly by the Investment Council through a secure custody solution, entrusted to a qualified custodian, or acquired in the form of exchange-traded products (ETPs) issued by registered investment companies. Security is a central focus of the proposal. Any BTC held by the state would require a private key exclusively controlled by the Investment Council, stored in encrypted, hardware-secured environments across at least two geographically separated, secure locations."
"Transaction approvals would require multi-party governance, and systems would enforce user access controls and maintain detailed audit logs. Additionally, the bill mandates regular code audits, penetration testing, and disaster recovery protocols to ensure state assets remain secure and accessible even in the event of system failures. In announcing the bill on X, Manhart said, "I am proud to say I have released my bill that would allow the State of South Dakota to invest in Bitcoin. Strong money. Strong state.""
"U.S. states are starting to love bitcoin The proposal comes amid growing interest from U.S. states and municipalities in incorporating digital assets into public portfolios, reflecting broader trends in cryptocurrency adoption and financial innovation. Earlier this month, Rhode Island lawmakers introduced Senate Bill S2021 to temporarily exempt small Bitcoin transactions from state income and capital gains taxes, with a $5,000 monthly and $20,000 annual cap."
House Bill 1155 would allow the State Investment Council to allocate up to 10% of state funds available for investment to Bitcoin. The bill provides multiple custody options, including direct holding through a secure custody solution, entrustment to a qualified custodian, or acquisition via exchange-traded products issued by registered investment companies. Any Bitcoin holdings would require a private key exclusively controlled by the Investment Council and stored in encrypted, hardware-secured environments across at least two geographically separated locations. Transaction approvals would require multi-party governance, user access controls, and audit logs. The bill mandates code audits, penetration testing, and disaster recovery protocols. The proposal follows growing state-level interest in digital assets, with Rhode Island introducing S2021 to exempt small Bitcoin transactions from certain taxes under set caps.
Read at Bitcoin Magazine
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