South Dakota Gov. Larry Rhoden defeated businessman Toby Doeden in the state’s first gubernatorial primary runoff on Tuesday, capturing 70.5% of the vote. Rhoden advances to face Democrat Dan Ahlers in the November general election after a campaign dominated by debates over tax relief and Bitcoin reserves.
A Historic Runoff and a Decisive Victory
South Dakota politics entered uncharted territory when South Dakota Gov. Larry Rhoden fended off a primary challenge from businessman and Bitcoin evangelist Toby Doeden. The contest marked the first time the state settled a gubernatorial nomination through a primary runoff.
State law mandates a runoff between the two leading contenders whenever no candidate for governor, U.S. Senate, or U.S. House secures at least 35% of the primary vote. The head-to-head showdown followed a crowded four-way June primary where Doeden finished first with 30.6% of the vote and Rhoden placed second with 25.2%. By Tuesday night, Rhoden staved off the grassroots challenge, securing 70.5% of the vote compared to Doeden’s 29.5% with approximately 25% of expected ballots counted.
Rhoden stepped into the governor’s office in early 2025 after his predecessor, Kristi Noem, departed to join the Trump administration. Despite holding the incumbent advantage, Rhoden had to navigate a vocal challenge from an opponent who framed the race as an outsider’s crusade against established leadership.
Crypto Policy and Property Taxes Collide on the Campaign Trail
The policy battle lines between the two Republicans highlighted starkly different visions for state governance. Doeden built a public profile as a dedicated cryptocurrency advocate, noting that he began investing very, very heavily
in digital assets around 2020 after dedicating roughly 500 hours to research.
Doeden’s digital asset platform went beyond personal holdings. He supported legislation aimed at allowing the South Dakota Investment Council—which oversees public employee pension funds and state investments—to allocate capital into Bitcoin. He also proposed establishing a state Bitcoin reserve, an idea that state investment and budget officials opposed.
Fiscal debates also centered heavily on property taxes. Doeden campaigned on eliminating the state’s property taxes entirely. Rhoden’s campaign countered that the proposal was fiscally reckless and would starve local governments and schools of essential funding, pointing instead to property tax relief legislation he signed in March.
Navigating the Label of Establishment Politics
The primary clash grew sharp as Doeden leaned into anti-establishment rhetoric. Following the June primary, Doeden declared that the career politicians told me
an outsider could not break through against entrenched officeholders.
Rhoden pushed back forcefully against the characterization during an interview with the South Dakota Public Broadcasting network, arguing that Doeden was attempting to manufacture political capital by labeling him a career politician. Rhoden defended his tenure by emphasizing that his years in the Legislature provided practical experience in drafting laws and living under their effects.
Neither candidate secured a formal public endorsement from President Donald Trump for the runoff. While Trump acknowledged Rhoden by name during a July 3 appearance at Mount Rushmore, he did not weigh in on the primary contest. Doeden campaigned as a fierce Trump supporter
committed to advancing the America First agenda.
General Election Outlook and Historical Context
With the primary nomination secured, Tuesday’s winner advances to face former Democratic state Sen. Dan Ahlers in November. The general election takes place against a backdrop of deep Republican dominance in South Dakota.
The state has not elected a Democratic governor in decades. The last Democrat to hold the office was Harvey Wollman, who assumed the role in 1979 after Richard Kneip resigned, while the last Democrat elected outright to the governorship was Kneip in 1974.
