South Carolina bans CBDCs, protects Bitcoin miners and crypto self-custody

CBDC Ban and Digital Asset Protections

South Carolina's Bill 163 effectively bans the state's use of any central bank digital currency and prohibits participation in CBDC tests. Beyond the CBDC restriction, the law establishes broader protections for digital asset users across the state.

The legislation shields individuals and businesses from being prohibited or restricted from accepting digital assets for legal goods or services. It also protects the right to use self-hosted wallets or hardware wallets for self-custody of digital assets.

"An individual or business shall not be prohibited, restricted, or otherwise prevented from accepting digital assets to purchase legal goods or services; or using a self-hosted wallet or hardware wallet, to maintain self-custody of digital assets" — Bill 163 text

Mining Operations and Licensing Exemptions

Bill 163 permits digital asset mining in industrial zones provided operators comply with sound pollution limits and don't place additional stress on the electrical grid. The law exempts miners, node operators, and blockchain software developers from requiring a money transmitter license, removing a significant regulatory barrier for these operations.

Path to Signature

Bill 163 was first introduced in January 2025 and passed the Senate in April. The House Labor, Commerce and Industry Committee returned a favorable report nearly a year after the May referral. In early May, the full House voted 110 to 1 in favor of the measure, sending it to the governor's desk.

A separate proposal, the Strategic Digital Assets Reserve Act (House Bill 4256), would allow the state treasurer to allocate up to 10% of select public funds into Bitcoin. That bill was referred to the Committee on Ways and Means in March 2025 but has not been further updated.