Bitcoin Takes Another Hit as South Dakota Kills State Investment Bill!

South Dakota Kills State Investment Bill! Lawmakers Crush State Investment Proposal!

When South Dakota senators decided to reject a bill that would have let the state invest in Bitcoin on Monday, they delivered Bitcoin supporters yet another setback. Since the term ends in 40 days, the House Commerce and Energy Committee made a crucial procedural decision by voting 9-3 to postpone HB1202 until the 41st day of the session. This effectively killed the bill. State Representative Logan Manhart (R-S.D.) proposed the idea, which aimed to allow the state to diversify its financial portfolio by investing up to 10% of its public monies in Bitcoin.

It’s a commonsense update to South Dakota’s investment strategy by allowing a limited allocation of state funds into alternative assets that have consistently proven to preserve value, particularly in inflationary environments,

Manhart

No Physical Use! South Dakota Official Slams Bitcoin After Investment Bill Fails

South Dakota‘s ruling comes after Montana lawmakers rejected a Bitcoin reserve bill last week by a vote of 41 to 59. The volatility and lack of inherent worth of Bitcoin have drawn criticism from Matt Clark, the State Investment Officer for South Dakota.

Bitcoin does not have any underlying physical use. It does not generate income, much like commodities or other kinds of assets.

Clark

Although Bitcoin might eventually be incorporated into public investments, Clark stated that it was too early to change the legislation given the current status of the market and that approving the measure would just cause further misunderstandings. Manhart disagreed, arguing that the state had to think about utilizing Bitcoin as a valued asset because of its decentralized character and fixed supply. Manhart is adamant about pursuing the bill’s resuscitation despite this setback, promising on X, “We will be back next year.”

For more up-to-date crypto news, you can follow Crypto Data Space.