South Carolina has passed a new law aimed at establishing a clear and supportive framework for cryptocurrency use, marking one of the most comprehensive state-level efforts to date.
Governor Henry McMaster signed Senate Bill 163 into law on May 19 after it passed the Legislature with strong bipartisan support, passing the Senate by a 38-1 vote and the House by a 110-1 vote. The measure amends the state’s legal code to define key digital asset activities while outlining protections for users, businesses and infrastructure linked to the sector.
At the heart of the legislation is a provision that affirms the right of individuals and businesses to use digital assets like bitcoin in commerce. The law states that no entity may be prohibited from accepting cryptocurrencies as payment for goods and services.
It also guarantees the right to store assets in self-hosted or hardware wallets, strengthening the principle of self-storage.
The bill further prevents South Carolina and local governments from imposing additional taxes or fees on transactions involving digital assets when those assets are used as a payment method. Lawmakers formulated this provision as a way to ensure parity between digital assets and US dollars in commercial use.
South Carolina: No use of CBDC by state actors
Another key element of the South Carolina law is its stance on central bank digital currencies. The legislation prevents any government agency, department or political subdivision from accepting or demanding payments in a CBDC.
It also prohibits participation in any testing program linked to a digital currency issued by the Federal Reserve. The measure reflects concerns among some policymakers about privacy, financial surveillance and federal overreach.
The law also includes protections for cryptocurrency mining, a sector that has sought clearer regulations at the state level. Local governments are restricted from imposing limits on mining operations in industrial zones that differ from those applicable to other industries in the same areas. The noise regulations should be in line with general standards rather than regulations targeted at mining.
In addition, several crypto-related activities are exempt from money transmitter licensing requirements. These include mining, operating network nodes, developing blockchain-based software, and engaging in crypto-to-crypto transactions.
Other states adopting pro-bitcoin measures
South Carolina joins a growing group of states pursuing legislation that supports the adoption of digital assets. Kentucky passed a similar measure in 2025 that protected self-storage rights and limited local restrictions on mining. Missouri’s House Bill 2080, introduced by Ben Keathley, would also establish a state-run Bitcoin Reserve Fund, allowing the treasurer to acquire, hold and oversee bitcoin under strict custody, reporting and long-term holding requirements.
The adoption of S. 163 signals a continued push at the state level to shape crypto policy in the absence of a unified federal framework, with lawmakers seeking to attract investment while addressing concerns related to new financial technologies.