A South Dakota legislator has reinstated a bill allowing Bitcoin investment

The file has been reopened.

A South Dakota state legislator has reintroduced a bill that would allow state investment funds—including the South Dakota Investment Council (SDIC) —to allocate a portion of their pension and public trust assets to Bitcoin . The bill, HB 1215 (titled “ Act to Allow Investment in Bitcoin by Certain State Funds ”), was introduced by Representative Tom Pischke (R-25) on January 27, 2026, and is co-sponsored by several Republican colleagues.

This is the third attempt in three legislative sessions to empower South Dakota 's public funds to invest in Bitcoin. Previous versions ( 2024 and 2025 ) stalled in committee or were not brought to a vote in plenary session, primarily due to concerns about volatility and fiduciary obligations. This revived bill comes amid significantly altered national and global dynamics:

• President Trump 's executive order establishes the Strategic Bitcoin Reserve (March 2025)

• Many US states (Texas, Arizona, Utah, Wyoming) have allowed or actively permitted the holding of Bitcoin in state funds or pension systems.

• Spot Bitcoin ETFs exceed $100 billion in cumulative inflows.

• The increasing acceptance by organizations and businesses ( MicroStrategy , Tesla , national interest)

Price volatility and fiduciary obligations

Critics remain unconvinced. They argue that Bitcoin's price volatility is incompatible with public funds designed to support pensions, infrastructure, and essential services. Skeptics also question whether elected officials should allow taxpayer-backed capital to fall into an asset class still considered politically and technologically controversial. At the heart of the opposition is a conservative understanding of fiduciary duty—an understanding that prioritizes capital preservation over innovation.

If South Dakota passes this bill, it could influence similar efforts elsewhere. State-level trials often serve as testing grounds for broader policy adoption, particularly in financial innovation. The debate itself demonstrates that Bitcoin is being considered within mainstream public finance discourse, rather than being relegated to fringe discussions.

Assessment and Conclusion

Representative Pischke's reinstatement of HB 1215 helps South Dakota further solidify its position as a Bitcoin-friendly state in the U.S. While not as strongly as Texas or Wyoming (states that have already allocated funds), a successful bill would add another significant institutional investor to the Bitcoin ecosystem — especially if the 3% cap is ultimately implemented.

With strong growth nationwide ( Strategic Bitcoin Reserve Fund, ETF flows, corporate bonds ), the adoption of Bitcoin at the state level continues to dismantle the " speculative " stereotype surrounding Bitcoin . If HB 1215 passes the commission and reaches the governor in 2026, South Dakota could join the growing list of states that consider Bitcoin a legitimate portfolio diversification tool.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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