Summary
- South Carolina said it will create a regulatory environment that protects the activities of digital-asset companies and users by enacting pro-crypto bill S.163.
- The S.163 law bars additional taxes and fees on digital-asset payments and blocks local governments from restricting the cryptocurrency mining industry.
- The law also codifies a ban on CBDC payments and non-participation in Federal Reserve experiments involving similar currencies, and includes definitions for blockchain, digital assets, mining, wallets and staking.
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South Carolina has enacted a pro-cryptocurrency law that codifies protections for activities including crypto mining.
The Block reported on May 19 that South Carolina Governor Henry McMaster signed S.163, a cryptocurrency bill, on May 18. The measure aims to create a regulatory environment that allows digital-asset companies and users to operate more freely in the state.
S.163 says individuals and businesses cannot be prohibited from accepting digital assets as payment for goods and services. It also protects the direct custody of digital assets through self-hosted wallets and hardware wallets.
The law also bars the state and local governments from imposing separate taxes, withholding requirements, assessments or fees when digital assets are used for payment.
The measure also formalizes protections for the cryptocurrency mining industry. Under S.163, local governments cannot restrict crypto mining operations in industrial zones. They are also barred from applying separate noise standards to mining companies that are stricter than general local noise rules.
The law also codifies restrictions on central bank digital currencies, or CBDCs. Specifically, South Carolina state agencies, commissions and subordinate bodies are barred from accepting CBDC payments. They also cannot participate in experiments involving similar currencies issued by the Federal Reserve.
S.163 also includes definitions for concepts including blockchain, digital assets, mining, wallets and staking.
