The bill that would have allowed the U.S. state to invest in Bitcoin has been postponed until after the legislative session ends, effectively sealing its failure.
South Dakota has effectively rejected the bill that could have enabled the state to invest in Bitcoin, with a 9-3 vote. During a meeting of the House Commerce and Energy Committee on February 24, the majority of legislators present voted to defer HB 1202 to the 41st day of the South Dakota legislative session. Since state legislative sessions never last more than 40 days, this maneuver has effectively blocked the current version of the proposal.
Matt Clark, the state’s Investment Officer, stated:
“Bitcoin does not have any underlying physical use. It does not generate income, much like commodities or other kinds of assets.”
The bill would have modified the classification of South Dakota’s public funds to include Bitcoin investments of up to 10% of the total. State Representative Logan Manhart, who introduced the proposal on January 30, stated on X that he intends to reintroduce the legislation in 2026.
Similar proposals to establish Bitcoin strategic reserves have also failed in other U.S. states, including North Dakota, Pennsylvania, Montana, and Wyoming.
