Another U.S. state reintroduces Bitcoin allocation bill, 10% of public funds may flow into BTC

South Dakota State Representative Logan Manhart is once again pushing for a state-level Bitcoin allocation policy. According to the latest news, he reintroduced HB 1155 on January 28, proposing to allow the state investment board to invest up to 10% of public funds in Bitcoin. This is a restart of the version proposed in 2025 but previously shelved, reflecting a shift in attitude among U.S. state governments toward Bitcoin asset allocation.

Market Changes Behind the Policy Restart

Key Points of the Bill

According to the news, the key aspects of HB 1155 include:

• Amendments to state law granting the state investment board the authority to invest in Bitcoin
• Investment cap: 10% of public funds
• Investment methods: Bitcoin or Bitcoin ETFs
• Status: Reintroduced, expected to enter the legislative process

This 10% cap is relatively conservative, demonstrating cautiousness among policymakers. Compared to the previous proposal, such a allocation would not pose excessive risk to state finances while allowing participation in Bitcoin’s potential growth.

Spread of State-Level Policies

If South Dakota successfully passes this bill, it will join the “pioneers club” of U.S. states with Bitcoin allocations. According to reports, three states have already enacted related legislation:

This trend from fringe to mainstream is noteworthy. Two years ago, state-level Bitcoin allocations were highly controversial. Now, multiple states are advancing related policies, indicating subtle changes in the political and regulatory environment.

Support from Market Conditions

From current data, Bitcoin’s market situation remains relatively stable:

• Current price: $89,091.17
• Market cap: $1.78 trillion, accounting for 58.87% of the crypto market
• 30-day increase: 1.50%

Such market performance provides a solid foundation for the promotion of state policies. Compared to the market environment when the 2025 policy was shelved, Bitcoin’s market cap and liquidity have significantly increased, potentially raising the likelihood of policy approval.

Issues to Watch

From an implementation perspective, several details warrant attention:

• Investment decision mechanism: How will the state investment board decide when and whether to invest?
• Risk management framework: Is the 10% cap sufficient to control market volatility risks?
• Follow-up actions: Will South Dakota’s policy push trigger a chain reaction in other states?

Personal opinion suggests that if South Dakota successfully passes this bill, more states are likely to follow suit. Once 2-3 states succeed, the “demonstration effect” of such policies will gradually unfold, potentially becoming a key focus of crypto policy in 2026.

Summary

U.S. state governments’ attitude toward Bitcoin allocation is shifting from exploration to practice. The restart of South Dakota’s bill reflects both improved market conditions and subtle changes in the policy environment. If ultimately enacted, it will further validate Bitcoin’s position as an “alternative asset” within mainstream finance. Future points of interest include whether other states will follow suit and the actual impact of such policies on long-term Bitcoin demand.