South Carolina Proposes State-Run Bitcoin reserve
South Carolina has introduced a new bill to create a state-run Bitcoin reserve. Teh Strategic Digital Assets Reserve Act, filed on March 27, aims to protect the stateS finances against inflation.
The bill allows the state treasurer to hold Bitcoin and other digital assets. Inflation has hurt retirement funds and state-managed assets. Bitcoin is seen as a way to hedge against economic volatility.
The Digital Assets Reserve would let the state own and manage Bitcoin.South Carolinians can also donate digital assets voluntarily. The bill sets clear investment rules. It requires safe storage through cold wallets or certified custodians. The state can hold up to 10% of total funds in digital assets, with a cap of 1 million BTC.
unused funds from the General Fund and Budget Stabilization Reserve Fund can be invested in the reserve. The state treasurer must publish public addresses of the reserve’s holdings for transparency.
This proposal comes as South Carolina reverses its stance on crypto regulation. The state has dropped its lawsuit against Coinbase’s staking services. This allows the exchange to relaunch staking for residents.
Paul Grewal, Coinbase’s chief legal officer, celebrated the lawsuit’s dismissal. He noted that South Carolina users lost nearly $2 million in staking rewards due to the legal battle. Grewal hopes other states with staking bans will follow South Carolina’s lead.
