South Carolina joins 9 other US states in passing 'Bitcoin Rights' laws

South Carolina became the latest state to pass sweeping rules for digital currencies on May 19 when Governor Henry McMaster put his signature on a bill that sets up protections for people who use and mine cryptocurrency.

The Senate Bill is added as Chapter 47 to South Carolina’s legal code. The bill was proposed in January 2024 and faced several hurdles before approval.

It was backed by state senators with a 38-1 vote in May 2025, but was held up due to differences with the House version. After a year, the final changes were made, and it was passed into law.

The law blocks South Carolina’s government offices from taking payments in a central bank digital currency. It also stops state workers from joining any Federal Reserve or federal government programs that test this type of money.

The bill spells out that a CBDC means digital money that comes straight from the U.S. Federal Reserve or another federal office. But the language makes clear that this does not cover digital money from private companies that is backed by regular dollars or government bonds.

This means privately-issued coins like USDC can still operate in South Carolina even though Federal Reserve digital currency cannot.

South Carolina protects digital wallet rights, bans extra taxes

People and businesses in South Carolina can now accept digital assets as payment for legal items and services without restrictions. The law protects the use of wallets that people control themselves, including physical devices that store crypto.

State and local governments cannot add extra taxes just because someone chooses to pay with digital assets instead of regular money.

Businesses that mine digital assets in areas zoned for industrial use now have legal protection. Local governments cannot put unfair zoning rules on these operations or target them with harsh noise limits or rules that single them out.

The law says that running blockchain nodes, mining digital assets, writing blockchain software, and offering staking services do not need money transmitter licenses in certain cases.

Companies that provide staking or mining services will not automatically be considered securities dealers under the state’s Title 35 laws. But the South Carolina Attorney General keeps the power to go after anyone who lies about offering these services, giving consumers protection against fraud.

The law requires big mining operations to avoid putting extra demand on the power grid. Mining companies might need to give power purchase agreements to the Public Service Commission to show they can cut back on electricity use when the grid is under pressure.

South Carolina joins Oklahoma, Kentucky, Arkansas, Florida, Mississippi, Montana, North Dakota, Louisiana, and Arizona in passing similar laws between 2024 and 2026.

The Satoshi Action Fund, a group that pushes for these policies, has worked with state lawmakers to pass bills protecting self-custody, mining rights, and node operations.

Senate passes federal digital dollar ban in housing package

On the federal level, the Senate tucked a CBDC ban into the final pages of the 302-page 21st Century ROAD to Housing Act in March.

The section says the Fed “may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary” until at least the end of 2030.

“Financial privacy is a cornerstone of American freedom, and any decision to authorize a Central Bank Digital Currency must remain with Congress and the American people,” said Digital Chamber CEO Cody Carbone in a statement.

But the House may push back on the Senate version because it forces large investors in housing, including private equity firms, to sharply limit how many homes they can own.

President Donald Trump has said he won’t sign bills until Congress sends him legislation requiring voters to show identification and proof of citizenship before voting in this year’s midterm election, adding doubt to the housing bill’s chances.

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