Individuals, businesses, and Bitcoin miners in South Carolina now have legal protections for the use, custody, and mining of digital assets, following the signing of a new bill by Governor Henry McMaster.
Key Provisions of the Bill
Originally introduced in January 2025, Bill 163 also prohibits the state from using any central bank digital currency (CBDC), often referred to as a “digital dollar,” and from participating in any CBDC trials.
The bill states that individuals and businesses cannot be prevented from accepting digital assets for legal goods or services, nor can they be restricted from using self-hosted or hardware wallets to maintain self-custody of their digital assets.
Furthermore, the legislation prevents restrictions on digital asset mining businesses operating in industrial zones, provided they adhere to general sound pollution limits and do not overburden the electrical grid. The bill also clarifies that miners, node operators, and blockchain software developers are exempt from money transmitter licensing requirements.
Legislative Process
The Senate passed the bill in April 2025, after which it was referred to the House Labor, Commerce and Industry Committee in May. The committee issued a favorable report nearly a year later, in April. A House vote in early May resulted in 110 “yeas” and 1 “nay.”
Related Legislation
This crypto-friendly legislation is not the only such bill considered by the state’s general assembly. Last year, a South Carolina representative introduced the Strategic Digital Assets Reserve Act, also known as House Bill 4256.
That bill proposed allowing the state treasurer to allocate up to 10% of certain public funds into Bitcoin, based on the general assembly’s finding that “inflation has eroded the purchasing power of assets held in state funds managed by the State Treasurer, as well as state retirement funds.”
The bill was referred to the Committee on Ways and Means in March 2025, but has not been updated since.
A representative for South Carolina Governor Henry McMaster did not immediately respond to a request for comment.
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