South Carolina has enacted comprehensive crypto legislation, with Governor Henry McMaster signing bill S.163 into law on Tuesday. The legislation establishes a broad regulatory framework for digital assets in the state while explicitly blocking the adoption of central bank digital currencies.

The law guarantees individuals and businesses the right to accept digital assets as payment for goods and services, and to store those assets in personal or hardware wallets without interference from state or local authorities. Cryptocurrencies used as a means of payment are exempt from any additional taxes, withholdings, assessments, or fees imposed by state or local government.

The anti-CBDC provisions are equally sweeping. Any state agency, board, commission, department, or political subdivision is prohibited from accepting or requiring payment in a central bank digital currency, or from participating in any testing of a similar instrument issued by the Federal Reserve.

The law also provides strong protections for mining operations. Local authorities are barred from restricting crypto mining activity in industrial zones or imposing noise standards on mining facilities beyond those that apply generally to other businesses in the area. Mining, node operations, blockchain application development, and crypto trading are all exempted from money transmission licensing requirements. The legislation also introduces formal definitions for key industry terms, including blockchain, digital assets, staking, wallets, and nodes.

South Carolina joins a growing list of US states moving in this direction. In March 2025, Kentucky passed House Bill 701, similarly guaranteeing the right to self-custody crypto assets and protecting miners from discriminatory local restrictions.