South Carolina passes law protecting crypto, banning CBDCs
6.6 Regulation South Carolina passed a law banning state use of CBDCs, protecting crypto payments, self-custody, and mining, while exempting crypto businesses from extra taxes and blocking state participation in federal CBDC pilots.
South Carolina has enacted S.163, a comprehensive cryptocurrency law that provides strong protections for digital asset users, self-custody holders, miners, and blockchain businesses. The law prohibits state agencies from accepting or participating in central bank digital currency (CBDC) programs, including federal pilots. It distinguishes between federally-issued CBDCs, which are banned, and privately-issued stablecoins, which remain permitted. Individuals and businesses are guaranteed the right to accept digital assets for payments and use self-hosted wallets, with protections against additional state or local taxes on crypto transactions. The legislation also eases zoning and licensing requirements for mining and staking operations, clarifies that certain services are not securities, and broadly defines digital assets to include stablecoins, fungible, and non-fungible tokens. Currently, the fiscal impact is assessed as zero, since no federal CBDC exists yet. These measures position South Carolina as a leading pro-crypto state with one of the most robust digital asset regulatory frameworks in the country.
