South Carolina lawmakers filed a bill that would let the State Treasurer buy cryptocurrencies such as Bitcoin with public money. House Bill H. 4256, called the Strategic Digital Assets Reserve Act of South Carolina, would allow up to 10 percent of state funds to go toward digital assets. The legislation targets money from the General Fund and Budget Stabilization Reserve, with a maximum of one million bitcoin purchases.
Rep. Jordan Pace submitted the proposal in March 2025. He said the bill would shield taxpayer money from rising prices. The proposal comes as more investors look into trending new coins best wallet platforms that track emerging digital assets with growth potential in 2025.
The bill requires state officials to publish wallet addresses publicly and conduct biennial audits of asset holdings. Officials must also adopt secure custody policies, which could include cold storage or third-party custodial services to protect the digital reserve. The legislation allows voluntary cryptocurrency donations from residents, expanding public participation in the state's financial strategy.
The General Assembly introduced another bill, Senate Bill S. 0163, to clarify how digital assets are treated in everyday transactions. S. 0163 proposes protections that would prevent additional taxation on digital assets used for lawful payments. The bill supports measures that allow individuals and businesses to use self-custody mechanisms and includes provisions limiting government authority over digital asset mining operations.
S. 0163 reached engrossed status by early May 2025 and was pending committee review. The bill addresses regulatory questions, such as preventing the state from requiring or accepting central bank digital currencies. It acknowledges the role of mining operations in supporting blockchain infrastructure.
The State Treasurer's Office runs its Digital Assets Literacy Project, which launched in fiscal year 2022-2023. This program teaches policymakers, businesses, and citizens about digital currency mechanics and benefits. The educational efforts lay groundwork for moving traditional finance into digital systems.
Utah lawmakers approved similar legislation that lets their treasurer buy digital assets. Other states are looking at comparable bills across the country. Wyoming tried to pass a Bitcoin reserve proposal but it failed in committee. Governor Mark Gordon said Bitcoin's price swings worried him.
As of August 2025, neither H. 4256 nor S. 0163 has passed in South Carolina. Both bills sit in committee review. Lawmakers and financial advisors keep talking about the proposals. State officials show more interest in digital assets than in previous years.
Pace and other supporters point to inflation as the main reason for the digital asset reserve. They say rising prices have hurt the value of money sitting in state accounts. Supporters believe Bitcoin and similar assets can protect against inflation and economic problems. The 10 percent limit means the state would not put all its money in cryptocurrency.