The bill amends South Dakota law to allow the state to invest in Bitcoin, expanding the types of securities and investments that state public funds can be allocated to. Specifically, it adds Bitcoin as an allowable investment, provided it meets certain criteria outlined in the new sections of the bill. The State Investment Council is authorized to invest up to ten percent of state moneys in Bitcoin, which must be held either directly by the Council, by a qualified custodian, or in the form of an exchange-traded product.

Additionally, the bill establishes definitions for key terms related to Bitcoin and digital assets, such as "digital asset," "qualified custodian," and "secure custody solution." It also sets forth stringent requirements for the secure custody of Bitcoin, including the exclusive control of private keys by the government entity, the use of encrypted environments, and the implementation of multi-party governance structures for transaction authorization. These measures aim to ensure the security and integrity of the state's investments in Bitcoin.

Statutes affected:
Introduced, 01/30/2025: 4-5-26