A bill has been proposed in South Carolina to establish a Strategic Digital Assets Reserve, primarily to create a Bitcoin reserve aimed at shielding against inflation and economic instability.
Purpose of the Bill
The bill aims to create a reserve used as a hedge against inflation. According to the bill's proponents, inflation has eroded the purchasing power of retirement funds and assets managed by the state.
Mechanisms and Limitations
To manage the reserve, the use of cold wallets and certified custodians is proposed. The maximum amount of digital assets is to be capped at 10% of total funds under management, and the number of Bitcoins cannot exceed 1 million. The state treasurer is expected to publish reserve account addresses to ensure transparency.
Regulatory Changes and Precedents
South Carolina has shifted its stance on cryptocurrency regulation. In March 2025, it was announced that the lawsuit against Coinbase's staking services had been dropped, allowing the company to resume operations in the state. This event is seen as a win for consumer rights. Similar initiatives are being considered in other states, like Arizona.
The establishment of a Bitcoin reserve in South Carolina could be a significant step towards innovative financial management and influence other states' stance on crypto assets.
