A proposed bill in South Dakota that would have allowed the state to invest up to 10% of its total funds in Bitcoin has been blocked. House Bill 1202, introduced by Representative Logan Manhart, was deferred by the House Commerce and Energy Committee due to concerns over the cryptocurrency’s price volatility and the lack of clear federal regulations.
The bill aimed to position South Dakota as a state with one of the largest Bitcoin reserves in the U.S., but the committee’s decision has raised alarm among critics who view Bitcoin as an unpredictable investment. Lawmakers expressed concern about the risk of using taxpayer dollars to invest in a volatile asset, especially amid the ongoing uncertainty surrounding its regulation.
With the bill not advancing in this legislative session, Representative Manhart plans to reintroduce the proposal in 2026. South Dakota’s decision mirrors similar actions taken in other states, such as North Dakota and Montana, where similar measures were rejected.
Despite the setbacks, interest in Bitcoin reserves remains high, with states like Florida, Missouri, and Arizona still considering such proposals. On the institutional front, companies like MicroStrategy, now known as Strategy, continue to invest heavily in Bitcoin, having accumulated nearly 500,000 BTC.
As of now, Bitcoin’s value stands at $91,948, reflecting a 4% decrease over the last 24 hours, with a market capitalization of $1.82 trillion.
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