According to Odaily, Dennis Porter, co-founder and CEO of the Satoshi Action Fund (SAF), announced on the X platform that North Dakota Representative Toman has introduced a bill to protect Bitcoin users’ rights. The proposed legislation aims to safeguard four key rights: the right to mine, the right to self-custody, the right to conduct peer-to-peer transactions, and the right to operate nodes.
Dakota Representative Logan Manhart introduced two legislative proposals on January 30 to integrate Bitcoin (BTC) into the state’s investment strategy.
House Bill 1202 (HB 1202) proposes allocating up to 10% of South Dakota’s public funds to BTC. Concurrently, House Concurrent Resolution 6006 (HCR 6006) urges the State Investment Council to consider Bitcoin as a hedge against inflation.
As of June 30, 2024, South Dakota held $16.6 billion in public funds, potentially allowing for a BTC investment exceeding $8 billion.
HB 1202 stipulates that only qualified institutions, such as federally or state-chartered banks or trust companies, can custody the acquired BTC. It also permits investments via an exchange-traded product (ETP) regulated by the US Securities and Exchange Commission, the Commodity Futures Trading Commission, or the South Dakota Division of Banking.
The bill further mandates secure private key management, requiring multi-party governance structures, encrypted storage, and geographically distributed data centers.
While HB 1202 sets the framework for BTC as a state investment, HCR 6006 takes a broader approach by encouraging the State Investment Council to explore Bitcoin’s potential as a hedge against inflation and economic uncertainty. The resolution cites Bitcoin’s $1 trillion market capitalization, its expanding role in global finance, and the fact that sovereign nations, including the U.S., already hold Bitcoin in their reserves.
Manhart first announced his intent to introduce Bitcoin reserve legislation on January 28.
13th U.S. State to Establish a BTC Reserve
South Dakota has become the 13th U.S. state to pass legislation establishing a strategic Bitcoin reserve. According to Dennis Porter, co-founder and CEO of the Satoshi Action Fund, 15 states are expected to introduce similar bills soon.
Other states, including Pennsylvania, Texas, Ohio, New Hampshire, and North Dakota, have recently seen BTC reserve bills introduced. If Kentucky Representative TJ Roberts follows through on his promise to introduce a Bitcoin reserve bill in the first week of his return to the General Assembly, only one more state will be needed to fulfill Porter’s projection.
