South Carolina Enacts Law Protecting Crypto Use and Mining, Bans State CBDC Participation
Governor Henry McMaster signed Senate Bill 163 on May 19, protecting individuals and businesses that use, custody, and mine digital assets in South Carolina. The law also bars the state from using or testing a central bank digital currency, and the sources differ on the bill's exact signing date and vote details.
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What the Law Does
South Carolina Governor Henry McMaster signed Senate Bill 163, a measure that protects individuals and businesses in the state who accept, hold, or mine digital assets. According to Decrypt's reading of the bill text, individuals and businesses cannot be prohibited or restricted from accepting digital assets for legal goods or services, or from using self-hosted and hardware wallets to maintain self-custody. Bitcoinist reported the signing date as May 19.
The bill also effectively bars the state from using any central bank digital currency, often called a digital dollar, and from participating in CBDC pilot tests. Bitcoinist described the measure as protecting cryptocurrency rights in a state that is now one of more than a dozen US states with similar laws.
Mining and Money Transmitter Provisions
For miners, the bill states that restrictions cannot be placed on digital asset mining businesses in areas zoned for industrial use, provided they meet general sound pollution limits and do not place additional stress on the electrical grid. Decrypt reports that miners, node operators, and developers of blockchain software are not required to hold a money transmitter license.
Legislative Path and Vote
Decrypt reports that the bill was first introduced in January 2025 and passed the Senate in April 2025. It was referred to the House Labor, Commerce and Industry Committee that May, which issued a favorable report in April of this year. Decrypt says a House vote in early May registered 110 yeas and one nay. Bitcoinist described the measure as having drawn almost no pushback, but the two accounts differ on the timeline of the House action, and neither source provides an independent tally of the Senate vote.
A Separate Bitcoin Reserve Proposal
Decrypt also reports on a separate bill, House Bill 4256, the Strategic Digital Assets Reserve Act, introduced last year. It would allow the state treasurer to allocate up to 10% of select public funds into Bitcoin, citing inflation's erosion of purchasing power. That bill was referred to the Committee on Ways and Means in March 2025 and has not been updated since. It is not part of the enacted law.
Open Questions
Decrypt said a representative for the governor did not immediately respond to a request for comment. The sources do not address how the CBDC restriction would be enforced or whether it conflicts with any federal action on a digital dollar.
Why It Matters
For Traders
The law's direct effect on token prices is limited, so traders should watch for federal CBDC or mining policy moves rather than acting on this state bill alone.
For Investors
Repeated state-level protections for self-custody and mining signal a durable legal floor for crypto activity in more than a dozen states.
For Builders
Miners, node operators, and blockchain developers in South Carolina are exempt from money transmitter licensing, which lowers compliance overhead for infrastructure deployed there.
This article is for information only and is not financial advice. Read the full disclaimer.
