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Amid growing concerns over Bitcoin’s price volatility, South Dakota lawmakers rejected a proposal on Monday to consider a strategic Bitcoin reserve during the current legislative session, instead opting to quietly postpone the bill to a later date.

Nine South Dakotan lawmakers voted in favor of the move, while three rejected it.

“This is definitely a setback for Bitcoin and its adoption as a state-level institutional asset,” Charles Wayn, co-founder of Galxe, told TheStreet Crypto.

Advocates for Bitcoin claim it serves as a hedge during inflation and underline that Bitcoin's hallmark decentralization means that no central bank can manipulate the supply or flow of Bitcoin. “States rejecting Bitcoin reserves are thinking in the short-term,” JP Richardson, CEO of crypto platform Exodus, told TheStreet Crypto. “Bitcoin is the hardest form of money. It’s immune to inflation, free from manipulation, and built for the long haul.”

“The real question isn’t whether states should hold Bitcoin — it’s how long they can afford not to,” Richardson said. “The real risk is sticking to assets that lose value over time. Forward-thinking states will adopt Bitcoin and lead — while the rest will be forced to catch up.”

South Dakota’s House Commerce and Energy Committee voted to move the bill to the 41st day of the session, which technically indicates that the bill will not be taken up during the current session.

Despite the hurdle, analysts remain optimistic that another state may adopt a Bitcoin reserve this year, with at least 18 considering the option, according to the Bitcoin Reserve Monitor . “Bitcoin will eventually find its way into U.S. governmental reserves — it really is just a matter of time,” said Wayn.

Florida, Utah , Arizona, and Texas are among the states still weighing similar proposals.