What does South Carolina’s new crypto law do?

South Carolina signed Senate Bill 163 into law, creating one of the most crypto-friendly state frameworks in the US. The law bans CBDC use by state agencies, protects Bitcoin miners and strengthens crypto self-custody rights.

Why did South Carolina ban CBDC participation?

The law blocks state agencies from accepting or participating in central bank digital currency payment systems or Federal Reserve pilot programmes. Supporters argue CBDCs could increase government control over payments and financial privacy.

How does the law protect Bitcoin miners?

The legislation prevents local governments from imposing mining-specific zoning restrictions, licensing barriers or excessive noise rules beyond normal industrial standards. It also requires proper public notice and comment before changing zoning rules affecting mining businesses.

What crypto rights are protected under Senate Bill 163?

The law protects self-custody by preventing governments from restricting hardware wallets or self-hosted crypto wallets. It also bars higher taxes on crypto payments compared with similar transactions made in US dollars.

Why is self-custody important for crypto users?

Self-custody allows users to control their own private keys and digital assets without relying on third-party exchanges or custodians. Many crypto supporters see this as a core principle of decentralisation and financial independence.

What crypto activities are exempt from money transmitter rules?

The law exempts mining, node operation, blockchain software development and crypto-to-crypto trading from money transmitter licensing requirements. Mining-as-a-service and staking-as-a-service providers are also excluded from securities classification.

How does South Carolina compare with other pro-crypto states?

South Carolina joins states including Kentucky, Florida and Arizona in passing crypto-friendly legislation. Many states are competing to attract blockchain infrastructure investment and digital asset companies.

Why are US states becoming more crypto-friendly?

Some state governments see crypto and blockchain as potential drivers of economic growth, energy investment and technology jobs. States are also responding to uncertainty at the federal level by creating their own regulatory frameworks.

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South Carolina backs Bitcoin miners and bans CBDCs

Written by Isaac FrancisPublished May. 21 2026

Henry McMaster signed Senate Bill 163 into law on Tuesday, introducing one of the most crypto-friendly state regulatory frameworks in the United States.

The legislation bans South Carolina state agencies and political subdivisions from accepting central bank digital currencies or participating in Federal Reserve-led CBDC pilot programs and payment systems.

The bill also protects crypto self-custody rights by preventing governments from restricting the use of self-hosted and hardware wallets while barring higher taxes on crypto payments than comparable transactions made in US dollars.

South Carolina’s law grants specific protections to Bitcoin miners operating in industrial zones by blocking local governments from imposing mining-specific zoning restrictions, licensing rules or excessive noise requirements beyond standard industrial regulations.

“A political subdivision shall not change the zoning of a digital asset mining business without going through the proper notice and comment,”

The legislation states.

The bill also exempts activities including mining, node operation, blockchain software development and crypto-to-crypto trading from money transmitter licensing requirements while excluding mining-as-a-service and staking-as-a-service providers from securities classification.

South Carolina joins states including Kentucky, Oklahoma, Arkansas, Florida and Arizona in passing crypto-friendly legislation as US states increasingly compete to attract digital asset businesses and blockchain infrastructure investment.

At the time of reporting, Bitcoin price was $77,932.10.