Committee advances update to unclaimed‑property law to cover virtual currency

A joint legislative panel voted to send House Bill 11‑96 to the floor after sponsors and the state treasurer described the measure as a technical update that lets South Dakota collect and return dormant virtual currency once it is liquidated.

"This bill allows us to accept liquidated digital currency," State Treasurer Josh Hader told the committee, stressing that the bill requires sale of any digital asset before the state will accept value: "We will not be accepting digital currency in any capacity. It's far too volatile for us to hold it as a state. So it would be required by law in this bill to be sold prior to us accepting it."

Representative Eric Muckey, a prime sponsor, said the bill is part of a broader package to modernize the state's unclaimed property process and to make it easier to locate owners. He told lawmakers the bill also updates an older address definition to reflect more modern practices and allows holders to remit property where only partial address information is available.

Proponents described the bill as narrowly targeted: the state would receive the value realized by liquidating virtual currency and then return that value to rightful owners in the same manner as other unclaimed property. Treasurer Hader and sponsoring lawmakers said the change would increase the state’s ability to accept and reunite more assets from financial and custodial holders.

Senators moved and seconded a due‑pass recommendation; roll call recorded nine ayes and no nays. HB 11‑96 now advances to the floor.

Votes at a glance: HB 11‑96 — mover: Senator Billhauer; seconder: Senator Vojta; tally 9 yeas, 0 nays; outcome: due pass (to the floor).