A proposal to establish a Bitcoin reserve for South Dakota has been halted after House Bill 1202, introduced by Representative Logan Manhart, was deferred by the House Commerce and Energy Committee.
The bill was intended to enable the state to invest up to 10% of its total fund in Bitcoin, putting South Dakota on the map as a state with the largest Bitcoin reserves. Still, the committee’s decision to suspend the bill after 40 days gave concern to the price volatility of Bitcoin and the absence of federal laws.
Critics said that spending state money on such an unpredictable commodity is very dangerous in terms of finance. Some members of the parliament raised concerns with regard to investing taxpayers’ money in an unpredictable digital currency with the existing uncertainty in the regulation of the same.
Since HB 1202 will not move forward in the current session, Representative Manhart intends to bring the bill back in the 2026 session. The delay is not unique to Wyoming as similar measures have also been turned down in other states such as North Dakota and Montana.
However, people still remain interested in Bitcoin reserves and some states like Florida, Missouri and Arizona are still considering new legislation. On the other hand, more institutions are investing in Bitcoin, as evidenced by MicroStrategy, now known as Strategy, which has purchased 499,096 BTC.
Currently, the value of Bitcoin is $91,948, which is 4% down within the last 24 hours and has a market capitalization of $1.82 trillion.
Also Read: North Carolina Becomes 20th State to Propose Bitcoin Reserve
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