South Carolina Bill Proposes Bitcoin as a State Reserve Asset

State Representative Jordan Pace has introduced a bill proposing to invest 10% of certain public funds in digital assets, specifically Bitcoin. The “Strategic Digital Assets Reserve Act” (HB4256) grants the state treasury the authority to acquire and hold Bitcoin as a strategic reserve.

The bill sets a maximum limit of 1 million BTC, ensures secure storage and regular audits. While it is initially focused solely on Bitcoin, it also allows room for the inclusion of other cryptocurrencies in the future.

Representative Pace stated that the bill aims to protect taxpayers’ money from inflation.

South Carolina Bill and US Bitcoin Reserve Policies

In March, President Trump signed an executive order to create a Strategic Bitcoin Reserve and US Digital Asset Stockpile using Bitcoin acquired from criminal cases. However, there are differing views on whether Bitcoin purchases should be made or stored in a “budget-neutral” way. Senator Lummis introduced a bill requiring the US government to acquire 1 million BTC within five years.

The South Carolina bill suggests legal provisions for cold storage and qualified custody. It also proposes that digital assets should not exceed 3% of the state’s total investment portfolio and mandates reports every two years. The bill will expire on September 1, 2035, but in case of renewal, it offers a ten-year trial period for including Bitcoin in public finance strategies.

US State Bitcoin Reserve Bills: Growing Trend and Cautious Approaches

South Carolina’s Bitcoin reserve bill is part of a nationwide growing trend. Arizona has brought forward bills aiming to invest in Bitcoin and manage crypto assets seized from crimes. Texas passed the Bitcoin Strategy Reserve Bill, and Oklahoma approved House Bill 1203. Kentucky passed a law offering tax incentives to miners. However, Utah removed references to strategic reserves at the last minute.

Some states remain cautious about Bitcoin reserves. Wyoming rejected Bitcoin reserve proposals, with its Governor advocating for a more cautious approach due to volatility. Montana, North Dakota, South Dakota, and Pennsylvania also abandoned similar bills.

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