PIERRE, S.D. (MITCHELLNOW) — A South Dakota House committee voted 9 to 3 to kill House Bill 1202 today (Monday), which would have permitted the state to make up to a 10 percent investment in Bitcoin.
The bill, from Rep. Logan Manhart, R-Aberdeen, died by being sent to the “41st day” of the 40-day legislative session.
Rep. Manhart pointed out that the legislation was permissive and not mandatory and was “a responsible and prudent approach to state financial management.”
The bill’s proponents, including Ben Wiener from the South Dakota Blockchain Institute, argued that Bitcoin could serve as a hedge against inflation and had been a better performer than traditional assets.
However, State Investment Officer Matt Clark recommended against the bill, calling Bitcoin unsuitable for state funds.
He raised questions about the origin and ownership of Bitcoin, saying that “there are too many unanswered questions” to consider it anything more than a speculative asset.”
Interestingly, Susan Luschas, who has been investing in Bitcoin since 2017, testified against the bill, calling Bitcoin a ‘Ponzi scheme.’ She said billionaires are looking to get out of Bitcoin and have the federal and state governments pay them so they can invest in land and other assets.
Rep. Steve Duffy, R-Rapid City, explained his ‘No’ vote. He said that he didn’t understand it and didn’t want to put other people’s retirement money at risk.
The committee chair noted that though the bill lost, the discussion was educational, and the participants learned more about Bitcoin and state investments.