Crypto Gains State-Level Support As South Carolina Bans Federal CBDCs

bitcoinistPublicado em 2026-05-21Última atualização em 2026-05-21

Resumo

South Carolina has joined over a dozen U.S. states in enacting legislation to protect cryptocurrency rights. Governor Henry McMaster signed Senate Bill 163, which passed with near-unanimous support. The law prohibits state agencies from accepting or requiring payments in a Federal Reserve-issued central bank digital currency (CBDC) or participating in related pilot programs, though privately issued stablecoins like USDC remain permitted. Beyond the CBDC ban, the legislation establishes a broad framework for digital assets. It protects the right of individuals and businesses to accept cryptocurrencies as payment, formally recognizes self-hosted wallets, and prevents discriminatory taxation on digital asset transactions. The law also provides legal protections for crypto mining operations against unfair local regulations and exempts certain activities like node operation and staking services from money transmitter licensing. It includes consumer protection measures, allowing the state Attorney General to prosecute fraud in staking or mining services.

South Carolina is now one of more than a dozen US states that have passed laws protecting cryptocurrency rights — and it did so with almost no pushback.

Governor Henry McMaster signed Senate Bill 163 on May 19, adding it to a growing stack of state-level digital asset laws that have quietly moved through Republican-controlled legislatures across the country.

A Near-Unanimous Vote That Signals Shifting Ground

The bill cleared the South Carolina Senate 38-1, a margin that says more than the law itself. Filed in January 2025, it spent 17 months working through the legislative process — passing the Senate in May of that year, getting reconciled with House amendments in April 2026, and landing on the governor’s desk this month.

Senators Daniel Verdin and Matthew Leber sponsored the bill. It now adds a new Chapter 47 to Title 34 of the South Carolina Code of Laws, laying out one of the more detailed state-level crypto frameworks in the country.

The law prohibits state government agencies from accepting or requiring payments in a central bank digital currency. It also bars those agencies from joining any Federal Reserve CBDC pilot or testing program.

But the definition matters: the bill describes a CBDC as a digital currency issued directly by the US Federal Reserve or a federal agency. Privately issued stablecoins backed by legal tender or government treasuries — such as USDC — fall outside that definition and remain permitted under state law.

BTCUSD now trading at $77,467. Chart: TradingView

What The Law Actually Covers

Beyond the CBDC ban, S.163 covers a wide range of crypto activity. Individuals and businesses are protected from being blocked from accepting digital assets as payment for legal goods and services.

Self-hosted and hardware wallets are formally recognized, allowing users to hold their own assets without government interference. State and local governments are also barred from taxing digital asset payments at higher rates than other payment types.

The law’s definition of digital assets is broad, covering cryptocurrencies, stablecoins, fungible tokens, non-fungible tokens, and other digital-only assets that carry economic, proprietary, or access rights.

Crypto mining operations also get legal cover. Local governments cannot impose unfair zoning rules, excessive noise restrictions, or regulations that single out mining businesses.

Node operations, blockchain software development, staking services, and mining activities are exempt from money transmitter license requirements under certain conditions.

Staking-as-a-service and mining-as-a-service providers will not automatically be classified as securities issuers under state law.

At the same time, the South Carolina Attorney General retains authority to prosecute fraud involving anyone who falsely claims to offer those services — a consumer protection measure built directly into the law.

Featured image from Pexels, chart from TradingView

Perguntas relacionadas

QWhat is the main purpose of the South Carolina Senate Bill 163, recently signed by Governor Henry McMaster?

AThe main purpose of South Carolina Senate Bill 163 is to establish a detailed state-level framework for digital assets. Its key provisions include prohibiting state government agencies from accepting or requiring payments in a Federal Reserve central bank digital currency (CBDC), banning state agencies from participating in any Federal Reserve CBDC pilot programs, and protecting various cryptocurrency-related rights and activities for individuals and businesses.

QHow does the South Carolina law define a Central Bank Digital Currency (CBDC), and what does it exclude from this definition?

AThe South Carolina law defines a Central Bank Digital Currency (CBDC) as a digital currency that is issued directly by the U.S. Federal Reserve or a federal agency. It specifically excludes privately issued stablecoins that are backed by legal tender or government treasuries, such as USDC, from this definition. These privately issued stablecoins remain permitted under the state law.

QWhat specific protections does the law provide for individuals and businesses regarding cryptocurrency?

AThe law provides several protections for individuals and businesses. It prohibits state and local governments from blocking them from accepting digital assets as payment for legal goods and services. It formally recognizes self-hosted and hardware wallets, allowing users to hold their assets without government interference. It also bars governments from taxing digital asset payments at a higher rate than other forms of payment.

QWhat legal protections does the law offer to crypto mining operations and related activities in South Carolina?

AThe law offers legal protections to crypto mining operations by prohibiting local governments from imposing unfair zoning rules, excessive noise restrictions, or regulations that specifically target mining businesses. Furthermore, it exempts node operations, blockchain software development, staking services, and mining activities from money transmitter license requirements under certain conditions. Providers of staking-as-a-service and mining-as-a-service are also not automatically classified as securities issuers under state law.

QWho sponsored the bill, and how did it perform in the South Carolina Senate vote?

AThe bill was sponsored by Senators Daniel Verdin and Matthew Leber. It passed the South Carolina Senate with an overwhelmingly supportive margin of 38 votes to 1, signaling strong bipartisan or broad legislative support for its provisions.

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