- South Carolina protects crypto payments, self-custody rights, and mining operations statewide.
- New legislation blocks state agencies from participating in CBDC payment testing programs.
- Crypto trading, mining, and blockchain development gain licensing exemptions under new regulations.
South Carolina Governor Henry McMaster signed a major cryptocurrency bill protecting self-custody rights, crypto payments, and blockchain mining operations while blocking state participation in CBDC programs. The newly approved legislation, S. 163, created one of the broadest state-level crypto frameworks in the United States. Lawmakers designed the bill to support digital asset adoption while limiting government control over cryptocurrency-related activities.
Under the law, businesses and individuals can freely accept digital assets as payment for goods and services across the state. Additionally, residents maintain the legal right to store cryptocurrencies using self-hosted wallets and hardware wallets without interference from state authorities. South Carolina also introduced tax protections tied to cryptocurrency payments. State and local governments cannot impose additional taxes, assessments, or charges on digital assets used during transactions.
That provision could encourage wider merchant adoption as blockchain payment systems continue expanding across the U.S. Besides supporting users, the legislation may also improve regulatory clarity for crypto-related businesses operating within the state.
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South Carolina Restricts CBDCs and Protects Crypto Mining Operations
Another major section of the law directly targeted central bank digital currencies. State agencies, commissions, boards, and departments cannot accept or require CBDC payments under the updated rules. The legislation also prevents government entities from participating in Federal Reserve testing programs involving digital currencies or similar financial systems.
At the same time, lawmakers strengthened protections for cryptocurrency mining companies operating in industrial zones. Local governments cannot introduce mining-specific zoning restrictions targeting those businesses unfairly. Moreover, local authorities cannot enforce sound restrictions against mining operations beyond existing general noise regulations. Consequently, mining firms could face fewer operational barriers while expanding facilities throughout the state.
South Carolina additionally added formal legal definitions for blockchain, staking, nodes, wallets, digital assets, and crypto mining within state law. Several blockchain activities also received exemptions from money transmitter licensing requirements. Those exemptions cover crypto-to-crypto trading, mining operations, node activities, and blockchain application development.
The legislation followed a broader national trend supporting cryptocurrency rights. Earlier this year, Kentucky passed similar protections supporting self-custody and limiting restrictions against crypto mining businesses. South Carolina’s new legislation positioned the state among the strongest crypto-supporting jurisdictions in the United States. The law combined protections for self-custody, mining, and digital asset payments while firmly rejecting state involvement in CBDC-related programs.
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