South Dakota’s Pioneering Move Towards a Strategic Bitcoin Reserve
South Dakota is on the brink of becoming the first state in the United States to enact legislation for a Strategic Bitcoin Reserve (SBR). This initiative, led by Representative Logan Manhart, emerges amidst the state’s notably brief legislative period, which concludes in mid-March. Manhart expressed optimism about this groundbreaking move, stating, “With one of the shortest legislative sessions in the nation, South Dakota is poised to be the first state to pass a Bitcoin reserve bill.”
Is South Dakota Set to Lead the Bitcoin Revolution?
The idea of a strategic Bitcoin reserve in South Dakota gained traction when Manhart announced on January 28 his intention to introduce a bill in the South Dakota House aimed at establishing such a reserve. He emphasized the importance of proactive governance, declaring, “We have a rare opportunity to be ahead of the curve. Let’s engage in this vital discussion!”
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The Legislative Pathway: House Bill 1202
On January 30, House Bill 1202 was introduced with Manhart as the chief advocate, alongside Representatives Aaron Aylward, Phil Jensen, and Dylan C. Jordan, and Senator Carl Perry. This legislation proposes that the State Investment Council could allocate up to 10% of state funds into Bitcoin. The bill mandates secure custody of any acquired Bitcoin, ensuring it is managed either by the state, a qualified custodian, or an approved exchange-traded product by federal regulators. Additionally, it sets forth comprehensive protocols for safeguarding private keys, emphasizing multi-party governance, encrypted storage, and robust disaster recovery mechanisms.
Competition Among States to Secure a Strategic Bitcoin Reserve
The race to establish a strategic Bitcoin reserve has sparked interest among various U.S. states. While several have initiated or contemplated similar legislation, South Dakota and Utah have emerged as frontrunners in this competition. According to bitcoinlaws.io, 14 states have already proposed legislation for a strategic Bitcoin reserve. Utah, under Representative Jordan Teuscher’s leadership, became the 11th state to do so on January 20, with only a 45-day legislative window to decide on its proposal.
Federal Interest in Bitcoin Reserves
As states like South Dakota and Utah navigate their legislative processes, federal discussions regarding Bitcoin reserves are also beginning to take shape. On February 4, during a historic press conference on digital assets hosted jointly by White House, Senate, and House leadership, Trump’s Crypto Czar David Sacks announced a federal-level exploration of a Bitcoin reserve. “We are considering a Bitcoin reserve. It’s one of the initial steps in our administration’s agenda. The concept of a Sovereign Wealth Fund, however, remains distinct,” he stated.
At the time of reporting, Bitcoin was trading at $98,480.
