South Dakota Representative Logan Manhart Introduces Bitcoin-Related Legislation
House Bill 1202: Investing in Bitcoin
South Dakota Representative Logan Manhart introduced two new legislative proposals on January 30, aiming to incorporate Bitcoin (BTC) into the state’s investment strategy. The proposals, House Bill 1202 (HB 1202) and House Concurrent Resolution 6006 (HCR 6006), have the potential to significantly impact the state’s financial landscape.
HB 1202: Allocating 10% of Public Funds to Bitcoin
HB 1202 would allow the state to allocate 10% of its public funds to Bitcoin. This would be a significant step towards diversifying the state’s investment portfolio and potentially generating returns. As of June 30, 2024, the state funds had $16.6 billion in assets, which would allow a state investment in Bitcoin of up to over $8 billion.
HB 1202: Establishing Framework for Bitcoin Investment
The bill also establishes a framework for the investment in Bitcoin, including the following:
- Qualified institutions, such as federally or state-chartered banks or trust companies, would have custody of the acquired Bitcoin.
- State funds can invest through an exchange-traded product (ETP) regulated by the US Securities and Exchange Commission, the Commodity Futures Trading Commission, or the South Dakota Division of Banking.
- Multi-party governance structures, encrypted storage environments, and geographically distributed secure data centers for private key management.
HCR 6006: Exploring Bitcoin as a Hedge Against Inflation
HCR 6006 takes a different approach, urging the State Investment Council to explore Bitcoin as a hedge against inflation and broader economic uncertainty. The resolution highlights Bitcoin’s $1 trillion market capitalization, its growing role as an international medium of exchange, and the fact that sovereign nations, including the U.S., already hold Bitcoin within their treasury reserves.
South Dakota: The 13th State to Introduce Bitcoin Reserve Legislation
South Dakota’s introduction of HB 1202 and HCR 6006 makes it the 13th state to pass legislation establishing a strategic Bitcoin reserve. According to Dennis Porter, co-founder and CEO of the Satoshi Action Fund, 15 states will soon introduce similar bills.
Other States Exploring Bitcoin Reserve Bills
Several other states have also seen Bitcoin reserve bills introduced recently, including Pennsylvania, Texas, Ohio, New Hampshire, and North Dakota. If Kentucky Representative TJ Roberts fulfills his promise to introduce a Bitcoin reserve bill in the first week of his return to the General Assembly, only one state will remain to satisfy Porter’s vow.
Conclusion
The introduction of HB 1202 and HCR 6006 marks a significant step towards incorporating Bitcoin into South Dakota’s investment strategy. The potential for diversification and potential returns is substantial, and the state’s move is likely to be followed by other states. As the adoption of Bitcoin as a reserve asset continues to grow, it will be interesting to see how this development unfolds.
FAQs
Q: What is the purpose of HB 1202?
A: HB 1202 aims to allow the state to allocate 10% of its public funds to Bitcoin and establish a framework for the investment.
Q: What is HCR 6006?
A: HCR 6006 urges the State Investment Council to explore Bitcoin as a hedge against inflation and broader economic uncertainty.
Q: How much money does South Dakota have in its funds?
A: As of June 30, 2024, South Dakota funds had $16.6 billion in assets.
Q: How many states have introduced Bitcoin reserve bills?
A: 13 states have introduced Bitcoin reserve bills, with 15 more expected to follow.
