TLDR
- South Carolina has enacted a new crypto law that includes an anti-CBDC bill signed by Governor Henry McMaster.
- The law allows individuals and businesses to use digital assets for payments without restrictions from the state.
- It protects the right to self-custody crypto assets through self-hosted or hard wallets.
- The legislation removes extra taxes and fees on cryptocurrencies used for payments.
- State agencies are prohibited from accepting or requiring central bank digital currency payments.
South Carolina has enacted an anti-CBDC bill as part of a broader crypto law signed by Governor Henry McMaster. The legislation creates a regulatory framework supporting digital asset use and blockchain activity. It also restricts state involvement with central bank digital currencies.
The law amends the South Carolina Code of Laws to support crypto users and businesses. It protects the use of digital assets for payments and self-custody.
New Law Expands Crypto Rights and Business Protections
Governor Henry McMaster signed S. 163 into law on Tuesday. The measure introduces clear definitions for blockchain, digital assets, and crypto-related activities.
The law allows individuals and businesses to accept digital assets as payment. It also protects the use of self-hosted wallets for holding crypto assets.
State authorities cannot block or restrict these activities under the new law. This provision ensures access to decentralized finance tools and services.
The legislation removes extra taxes on crypto used for payments. It bars state and local governments from adding fees or assessments.
Mining operations receive protections under the law. Local governments cannot ban mining in industrial zones or impose special noise limits.
The law treats mining noise under standard local noise regulations. This approach aligns crypto mining with other industrial activities.
Several crypto activities now avoid money transmitter licensing requirements. These include mining, node operations, and onchain application development.
Crypto-to-crypto trading also falls outside licensing rules. This change reduces compliance burdens for developers and businesses.
Anti-CBDC Bill Blocks State Participation in Digital Dollar
The anti-CBDC bill prohibits state agencies from accepting or requiring central bank digital currency payments. It also blocks participation in Federal Reserve CBDC testing programs.
The law applies to all state bodies, including boards and political subdivisions. This restriction creates a clear stance against government-backed digital currencies.
Lawmakers included this provision to limit state-level adoption of CBDCs. The measure separates public institutions from federal digital currency efforts.
- 163 also outlines key blockchain terminology for legal clarity. Definitions include staking, nodes, wallets, and mining operations.
The framework aims to reduce ambiguity in crypto regulation. Clear terms support enforcement and compliance across the sector.
Other U.S. states have passed similar crypto laws in recent years. These laws focus on protecting self-custody and mining rights.
In March 2025, Kentucky enacted House Bill 701 with similar provisions. That law protects self-hosted wallets and restricts local mining limits.
South Carolina’s law now aligns with this trend of state-level crypto support. It strengthens legal certainty for blockchain businesses operating locally.
The legislation took effect following the governor’s signature on Tuesday. State agencies must now comply with the new anti-CBDC and crypto provisions.
