South Carolina signed a pro-crypto law protecting self-custody rights while banning CBDC participation statewide.
South Carolina Governor Henry McMaster signed S. 163 into law on Tuesday, establishing a comprehensive regulatory framework for cryptocurrency activities in the state and prohibiting participation in central bank digital currency (CBDC) programs.
The legislation amends the South Carolina Code of Laws to prevent individuals and businesses from being barred from accepting digital assets as payment for goods and services. It also affirms the right to self-custody holdings in self-hosted or hardware wallets.
Crypto used as payment is exempt from any additional state or local tax, withholding, assessment or charge under the new law. The bill also includes definitions for key terms such as blockchain, digital assets, crypto mining, staking, wallets, and nodes.
Several categories of crypto activity are now exempt from money transmitter licensing requirements in the state. These include crypto mining, node operations, developing on-chain applications, and crypto-to-crypto trading.
The anti-CBDC provisions prohibit any state agency, board, commission, department, or political subdivision from accepting or requiring payment in central bank digital currency. State entities are also barred from participating in any Federal Reserve test of a similar digital currency.
Mining operations received dedicated protections under the new law. Local governments are prohibited from restricting mining businesses in industrial zones or applying sound-level limits beyond an area's general noise ordinances.
South Carolina's move follows similar legislation in other US states. In March 2025, Kentucky passed House Bill 701 into law, guaranteeing individuals the right to hold crypto in self-hosted wallets and banning local governments from enacting laws that discriminate against mining operations.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
