South Carolina Bars CBDC Use, Protects Crypto Users
Governor Henry McMaster signed Senate Bill 163, banning state use and testing of CBDCs and extending legal protections for digital-asset custody, transactions and Bitcoin mining.
Governor Henry McMaster signed Senate Bill 163 into law on Tuesday, banning the state’s use and testing of any central bank digital currency and extending legal protections for digital-asset use, self-custody and Bitcoin mining in South Carolina.
The bill was introduced in January 2025, passed the state Senate in April 2025, received a favorable committee report in April 2026, and won a House vote in early May 2026 by 110 to 1 before reaching the governor’s desk.
SB 163 bars state agencies from adopting a so-called “digital dollar” or participating in CBDC experiments. The bill reads, “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.”
The law prevents state-level limits on accepting digital assets and on using self-hosted or hardware wallets. It protects mining operations in zones designated for industrial use from additional restrictions based solely on mining activity, provided they meet general pollution limits and do not place added strain on the electrical grid.
The bill’s final section states that a money transmitter license is not required for miners, node operators or developers of blockchain software. Supporters described the measure as protecting property rights and business activity while maintaining environmental and grid standards.
A representative for Governor McMaster did not immediately respond to a request for comment.
A related proposal, the Strategic Digital Assets Reserve Act (House Bill 4256), would allow the state treasurer to invest up to 10% of certain public funds in Bitcoin. That bill was referred to the Committee on Ways and Means in March 2025 and has not advanced.
At the federal level, President Donald Trump signed an executive order directing federal financial agencies to review whether crypto and fintech firms should have direct access to Federal Reserve payment accounts.
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