On January 6, South Dakota Attorney General (AG) Marty Jackley announced a package of proposed legislation to modernize various aspects of the state’s criminal statutes. Among the proposals is a bill that would expressly authorize law enforcement to seize cryptocurrency as part of a criminal investigation. The measure reflects a growing concern that digital currency occupies a central role in much criminal activity and that legislation may be necessary in some jurisdictions to address those concerns.
Cryptocurrency’s defining features — its ease of transfer, its resistance to traditional banking oversight, and its ability to move seamlessly across jurisdictions — have made it an increasingly attractive vehicle for fraud and other criminal activity. Yet South Dakota law, like that of many states, does not explicitly include cryptocurrency within its current definitions of property subject to seizure. The AG’s proposal is designed to address that omission and provide clarity where ambiguity now exists.
Cryptocurrency already is subject to seizure by federal officials and officials in many states other than South Dakota.
Clarifying the Status of Digital Currency as Property
The bill does not create new categories of authority so much as it confirms that existing authority extends to a modern form of property.
At its core, the bill would add “digital currency” to the categories of property that may be seized in the course of a criminal investigation. In doing so, it would place cryptocurrency alongside cash, bank accounts, and other forms of tangible and intangible property that courts have long recognized as subject to restraint or forfeiture when connected to criminal conduct.
Courts have increasingly treated digital assets as property in a general sense, but the absence of explicit statutory language complicates seizure efforts and invites legal challenges. If enacted, the bill would provide law enforcement with a firmer statutory foundation to preserve and seize digital assets connected to criminal activity.
Any seizure would remain subject to judicial oversight and the constitutional and statutory limits imposed by federal and state law. The bill does not expand the scope of permissible searches or lower the standard for government action; it simply clarifies that when lawful authority exists, that authority extends to digital currency. The State Senate Judiciary Committee voted the cryptocurrency seizure bill out of committee on January 15, sending it to the full Senate.
A Broader Legislative Effort
The cryptocurrency proposal is one component of a broader set of reforms advanced by the AG. The package includes measures addressing criminal invasions of privacy, enhanced investigative subpoena authority, protections for genetic data, changes to controlled substance penalties, and provisions aimed at strengthening open-meeting transparency. Together, these proposals reflect a consistent theme: the modernization of South Dakota’s laws to ensure the state’s criminal statutes remain coherent, current, and capable of addressing today’s technological threats.
Conclusion
The proposed legislation concerning the seizure of digital currency represents a step toward aligning South Dakota law with modern financial realities. By explicitly recognizing cryptocurrency as property subject to seizure, the bill would provide clarity, consistency, and practical guidance to courts and law enforcement alike.
Whether this proposal ultimately becomes law, however, remains uncertain. Like any bill, it must proceed through the legislative process and obtain the approval necessary to be enacted. Only then will its effect on future investigations be fully realized.
