South Dakota Follows Montana's Lead, Rejects Bitcoin Reserve Plan

South Dakota lawmakers disappointed Bitcoin advocates on Monday when they formally rejected a bill that would have allowed the state to invest in Bitcoin.

The House Energy and Commerce Committee voted 9-3 to postpone HB1202 until the 41st day of the session. This effectively means the bill is dead, as the session ends in less than 40 days.

South Dakota's decision comes just days after Montana made a similar move. Montana lawmakers previously rejected a Bitcoin reserve proposal, with a 41-59 vote, marking the state's strong rejection of investing in digital assets.

A South Dakota bill introduced by State Representative Logan Manhart (R-S.D.) would have allowed the state to invest up to 10% of its public funds in Bitcoin as a way to diversify its financial portfolio. However, with the new ruling, the proposal has been killed.

The bill’s rejection is a blow to advocates of local governments adopting digital assets like Bitcoin for public investments, as many states are still considering similar policies.