Key Takeaways
Gov. McMaster signed S.163 into law, making South Carolina’s crypto protections among the strongest in the U.S.The bill passed 110-1 in the House and bans state agencies from accepting or testing any Federal Reserve central bank digital currency ( CBDC).South Carolina joins Texas and Florida in offering miners and blockchain operators zoning relief and licensing exemptions.
South Carolina Lawmakers Back Crypto Bill 110-1, McMaster Signs It Into Law
The legislation, formally designated R131 and adding Chapter 47 to Title 34 of the South Carolina Code of Laws, took effect immediately upon signing. It cleared the Senate 38-1 and passed the House 110-1, signaling broad agreement across party lines.
The law bars all state governing authorities, including boards, commissions, departments, agencies, and political subdivisions, from accepting or requiring payments in a central bank digital currency. State entities are also prohibited from participating in any federal CBDC pilot program. The bill defines CBDC as a digital currency issued directly by the Federal Reserve or a federal agency, excluding privately issued, asset-backed stablecoins.
Individuals and businesses operating in South Carolina can now freely accept digital assets, including virtual currencies, cryptocurrencies, stablecoins, and non-fungible tokens, as payment for legal goods and services. The law explicitly protects the right to use self-hosted wallets and hardware wallets for self-custody.
On taxation, the bill establishes neutrality between digital asset payments and U.S. dollar transactions. Merchants and individuals cannot face additional taxes, withholdings, or charges simply because a payment was made in cryptocurrency rather than fiat.
Crypto miners operating in industrially zoned areas also gain specific protections. Local governments cannot impose sound restrictions beyond those applied to other industrial businesses, and rezoning cannot proceed without proper notice and a public comment period. Mining businesses drawing more than one megawatt of power must provide power purchase agreements to the South Carolina Public Service Commission on request, demonstrating load-shedding capability during grid stress.
The law removes the money transmitter license requirement for digital asset mining, operating network nodes, developing blockchain software, and peer-to-peer digital asset exchanges that do not involve fiat currency or bank accounts. Staking and mining as a service are not classified as securities under the bill, though the state attorney general retains the authority to prosecute fraud in those categories.
S.163 was introduced Jan. 14, 2025, by state Sens. Verdin and Leber. The Senate passed it in May 2025, and the House followed on May 5, 2026. The bill was ratified on May 14, before McMaster signed it days later.
The legislation builds on earlier state efforts, including a Digital Assets Literacy Project established by the South Carolina State Treasurer’s Office under the 2022-2023 appropriations.
South Carolina joins Texas and Florida among states that have moved to attract miners and blockchain operators through zoning relief, licensing exemptions, and regulatory clarity. The CBDC prohibition mirrors the goals of the federal Anti- CBDC Surveillance State Act, which has circulated in Congress but has not yet passed.
The law does not affect federal rules or privately issued stablecoin products. Its scope is limited to state-level governance and the rights of individuals and businesses operating within South Carolina. Businesses and miners looking to relocate or expand operations now have a direct statutory framework protecting self-custody, payment rights, and operational zoning in the state.
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