South Carolina Signs Pro-Crypto Law While Banning CBDC Use in State Agencies

South Carolina Governor Henry McMaster has signed a new bill, S. 163, into law that creates a clear regulatory framework for cryptocurrencies while also taking a strong stance against central bank digital currencies (CBDCs).

The law aims to build a more crypto friendly environment for individuals and businesses operating in the state, giving legal clarity on the use of digital assets for payments and storage.

Self-Custody Rights and Crypto Payments Protected

Under the new law, individuals and businesses in South Carolina are allowed to accept cryptocurrency as payment for goods and services. The law also protects the right to use self-hosted wallets and cold storage for holding digital assets without restrictions.

In addition, crypto used for payments will not be subject to extra state or local taxes, fees, or charges, helping reduce regulatory pressure on digital asset usage.

Strong Anti-CBDC Measures Included in Bill

A key part of the legislation is its strict opposition to central bank digital currencies. The law explicitly prohibits any state agency, department, or local authority from accepting or requiring payments in CBDCs.

It also blocks state participation in any pilot programs or testing related to a Federal Reserve-issued digital currency.

Crypto Mining and Industry Growth Supported

The bill also provides support for crypto mining operations across the state. Local governments are restricted from limiting mining activities in industrial zones or adding special noise rules beyond general regulations.

The law also defines key blockchain terms such as digital assets, staking, wallets, nodes, and mining, helping establish legal clarity for the industry.

With this move, South Carolina joins several other US states that have introduced similar crypto protections and mining friendly rules.