South Carolina Enacts Pro-Crypto Law That Bars CBDCs

South Carolina has adopted a sweeping pro-crypto measure after Governor Henry McMaster signed Senate Bill 163 into law, a move that positions the state among the more crypto-friendly jurisdictions in the U.S. SB 163 passed with strong bipartisan margins in both the state Senate and House. The statute blocks state agencies and political subdivisions from accepting central bank digital currencies (CBDCs) as payment, requiring their use, or joining any Federal Reserve-led CBDC pilot programs. Supporters argue government-issued digital currencies could expand financial surveillance and erode personal privacy. The law also codifies the right to self-custody digital assets, allowing residents to use hardware wallets and self-hosted wallets without state restrictions. It further prohibits imposing higher taxes on crypto transactions than on comparable payments made in U.S. dollars. Bitcoin mining receives dedicated protections. Local governments are restricted from singling out mining operations with rules not applied to other industrial businesses, including mining-specific noise regulations beyond existing environmental and pollution standards. Municipalities also cannot change a mining firm's zoning status without proper notice and public comment, and affected companies retain the right to challenge zoning decisions in court. Beyond mining, SB 163 eases regulatory friction for a range of blockchain activities. Node operation, mining, blockchain software development, and crypto-to-crypto trading are exempt from money transmitter licensing requirements. The law also states that mining-as-a-service and staking-as-a-service providers should not automatically be treated as securities offerings. South Carolina joins other states that have advanced pro-crypto legislation in recent years, including Kentucky, Oklahoma, Arkansas, Florida, Mississippi, Montana, North Dakota, Louisiana, and Arizona.