This bill amends South Dakota law to allow the state to invest in Bitcoin as part of its public funds investment strategy. Specifically, it modifies section 4-5-26 to include Bitcoin as an allowable investment, alongside other securities and financial instruments. The bill establishes that the State Investment Council may invest up to ten percent of state moneys available for investment 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 introduces new definitions and requirements related to Bitcoin investments, including terms such as "digital asset," "qualified custodian," and "secure custody solution." It outlines the characteristics that a secure custody solution must possess, such as exclusive access to the private key by the government entity, encrypted environments for key storage, and multi-party governance for transaction authorization. These provisions aim to ensure the security and proper management of state investments in Bitcoin.

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