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 include. Specifically, it adds Bitcoin as an allowable investment, provided it meets certain requirements outlined in the new sections of the bill. The State Investment Council is authorized to allocate up to ten percent of state moneys available for investment into Bitcoin, which must be held either directly by the Council, through 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 "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 and the use of encrypted environments for security. These measures aim to ensure that investments in Bitcoin are managed safely and in compliance with regulatory standards.

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