South Carolina Governor signs pro-crypto, anti-CBDC bill into law

South Carolina has enacted new legislation establishing a comprehensive regulatory framework for cryptocurrency-related matters.

Governor Henry McMaster signed S. 163 into law on Tuesday, amending the South Carolina Code of Laws to create a crypto-friendly environment for crypto users and businesses. 

The new law states that individuals and businesses may not be prohibited from accepting digital assets as payments for goods and services or from using self-hosted or hard wallets to self-custody their digital asset holdings.

It also exempts cryptocurrencies used for payment from any additional tax, withholding, assessment, or charge by the state or local governments. 

Anti-CBDC

Another core part of the law is its anti-CBDC language.

The legislation prohibits any state agency, board, commission, department, or political subdivision from accepting or requiring payment in central bank digital currency (CBDC) or participating in any test of a similar currency issued by the Federal Reserve.

The law also provides strong support for crypto mining operations, prohibiting local governments from restricting mining operations in industrial zones or imposing specific sound-level limits on mining businesses beyond the area's general noise pollution regulations.

Additionally, S. 163 laid out basic definitions of terms, including blockchain, digital assets, crypto mining, staking, wallets, nodes, and others.

With the passage of the new law, several key crypto activities are exempt from money transmitter licensing requirements. These activities include crypto mining, node operations, developing onchain applications, and crypto-to-crypto trading.

Multiple other U.S. states passed similar bills last year. In March 2025, Kentucky passed House Bill 701 into law, guaranteeing individuals the right to hold and manage crypto assets in self-hosted wallets and banning local governments from passing discriminatory laws against crypto mining operations.