Committee gives favorable report to bill creating digital-asset framework, restricts government CBDC participation

The subcommittee gave a favorable report to Senate Bill 163, a measure to create a regulatory framework for digital currency and digital asset activities in state law.

Alexander Smith, who presented the committee report, said the bill would add a new Chapter 47 to the South Carolina Code of Laws to regulate digital currency and digital-asset activities. "It bans state and local governments from requiring or accepting central bank digital currency or participating in testing," Smith said, adding the bill would "allow individuals and businesses to use digital currency voluntarily" and aim to prevent discriminatory zoning or tax treatment for digital-currency operations.

The bill also establishes limits and reporting requirements for digital-asset mining to protect the electrical grid, clarifies that certain mining and staking activities do not require specific licenses or constitute securities, and gives the Attorney General authority to prosecute fraudulent digital-mining or staking services. Smith said banking associations and the South Carolina Municipal Association had signed off on the bill and that there were no known opponents at the time of the hearing.

With no questions recorded in the transcript, the committee reported SB 163 favorably to be sent to the House floor.