- South Carolina passed a broad pro-crypto law
- The legislation bans state participation in CBDC programs
- Crypto mining receives new legal protections
- Several crypto activities are exempt from money transmitter licensing
South Carolina Expands Crypto Protections
South Carolina Governor Henry McMaster signed S. 163 into law, creating one of the state’s most comprehensive crypto regulatory frameworks to date.
The legislation strengthens protections for crypto users, businesses, miners, and self-custody wallet holders.
Strong Anti-CBDC Language Included
One of the bill’s most notable provisions bans state agencies and political subdivisions from accepting or requiring payments in central bank digital currencies.
The law also prohibits participation in Federal Reserve CBDC testing initiatives.
Anti-CBDC policies have become increasingly popular among Republican-led states amid concerns over financial privacy and government surveillance.
Mining Operations Receive Support
The law additionally prevents local governments from discriminating against crypto mining operations in industrial zones.
Municipalities are also barred from imposing special sound restrictions on mining businesses beyond standard noise pollution regulations already applied to other industries.
Licensing Exemptions Expanded
Several blockchain-related activities are now exempt from money transmitter licensing requirements under the legislation.
Those exemptions include crypto mining, node operation, staking, crypto-to-crypto trading, and building onchain applications.
The legislation follows similar crypto-friendly laws previously adopted in states such as Kentucky.
