South Carolina Plans to Create Its Own Bitcoin Reserve with a Limit of 1 Million BTC
Date: 2025-03-28 Author: Henry Casey Categories: IN WORLD
On March 27, a bill called the Strategic Digital Assets Reserve Act was introduced to the South Carolina Legislative Assembly, which proposes the creation of a state reserve of digital assets, in particular Bitcoin. If approved, the state treasurer will have the right to invest in cryptocurrencies to protect state funds from inflation.
The document emphasizes that rising inflation has reduced the purchasing power of pension savings and other state funds. In response, the state authorities plan to use Bitcoin as a means of hedging economic risks and volatility. Citizens are also offered the opportunity to voluntarily transfer digital assets to the reserve fund.
The draft law limits the share of cryptocurrencies in the total volume of asset management to no more than 10%. In addition, the total volume of Bitcoin that the state can own must not exceed 1 million BTC. Cryptocurrencies must be stored exclusively in cold wallets or with certified custodians, which will ensure a high level of security.
If the bill passes, the South Carolina Treasury will be able to use unallocated funds from sources such as the General Fund and the Budget Stabilization Reserve Fund to purchase digital assets. In the interests of transparency, the state will be required to publish the addresses of the wallets where the assets will be stored so that anyone can check the movement of funds.
This initiative coincides with other changes in the state’s cryptocurrency policy. On the same day, March 27, Coinbase General Counsel Paul Grewal announced that South Carolina had dropped a lawsuit against the platform’s staking services. This decision allows Coinbase to resume staking for state residents.
Grewal noted that South Carolina users lost about $2 million in potential staking earnings due to the lawsuit. He hailed the dismissal of the case as a victory for consumer rights and called on other states with staking restrictions to follow South Carolina’s example. According to him, more than 52 million Americans own cryptocurrency and need clear rules and protections.
