- South Dakota lawmakers rejected bill HB1202 that would have allowed 10% of state funds to be invested in Bitcoin.
- The bill’s defeat follows similar rejections in Montana, North Dakota, Wyoming, and Pennsylvania.
- State Representative Manhart championed Bitcoin as a hedge against inflation, while Investment Officer Clark cited volatility concerns.
- Eighteen state-level Bitcoin reserve proposals remain active across the United States.
- Bitcoin’s value dropped 3.9% to $91,980 amid broader market uncertainty.
South Dakota’s House Commerce and Energy Committee voted 9-3 to effectively kill legislation that would have permitted Bitcoin investments using state funds, marking another setback for cryptocurrency adoption at the state level. The decision to defer HB1202 until the 41st legislative day essentially terminated the bill, as the session only runs for 40 days.
State Representative Logan Manhart, the bill’s primary sponsor, proposed allowing up to 10% of South Dakota’s public funds to be allocated to Bitcoin investments. Manhart argued for Bitcoin’s potential as an inflation hedge, stating: “It’s a commonsense update to South Dakota’s investment strategy by allowing a limited allocation of state funds into alternative assets that have consistently proven to preserve value.”
However, Matt Clark, South Dakota’s State Investment Officer, expressed skepticism about Bitcoin’s fundamental value. “Bitcoin does not have any underlying physical use,” Clark noted, highlighting concerns about the cryptocurrency’s lack of income generation and inherent volatility.
The rejection aligns with a broader pattern of state-level resistance to cryptocurrency adoption. Wyoming, North Dakota, and Pennsylvania have recently stalled similar proposals. Montana lawmakers notably rejected their Bitcoin reserve bill in a 41-59 vote last week.
Despite these setbacks, cryptocurrency advocacy continues to gain traction in other states. According to the Bitcoin Reserve Tracker, approximately 18 state-level Bitcoin reserve proposals remain under consideration, including initiatives in Arizona, Florida, Utah, and Texas.
The legislative defeat coincided with broader market turbulence, as Bitcoin’s value declined 3.9% to $91,980, according to CoinGecko data. The cryptocurrency market’s reaction reflected wider concerns in global financial markets, particularly in the technology sector.
Manhart remains optimistic about future prospects, announcing on social media platform X: “We will be back next year.”
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