South Carolina may soon manage a Bitcoin-backed state reserve
South Carolina Bitcoin state reserve
South Carolina has introduced a bill that could authorize the state to invest a portion of its treasury funds into Bitcoin, marking a bold step toward integrating digital assets into public finance.
The legislation, House Bill 4256, was sponsored by Representative Jordan Pace and is currently under review by the House Committee on Ways and Means, according to the Cryptopolitan.
The proposal allows the State Treasurer to allocate up to 10% of the state’s investment portfolio into Bitcoin and other digital assets. The move is framed as a response to inflation and economic volatility, which have eroded the purchasing power of state-managed assets and pension funds.
A hedge against inflation and economic uncertainty
“Bitcoin, as a decentralized digital asset, and other digital assets offer unique properties that can act as a hedge against inflation,” the bill states. It also highlights that South Carolina, lacking control over national monetary policy, must find independent ways to protect its financial resources.
If passed, the bill would empower the State Treasurer to purchase digital assets using unallocated funds from the General Fund, Budget Stabilization Reserve Fund, or other managed accounts. The legislation caps individual digital asset holdings at 3% of the total digital asset reserve to ensure diversification.
The bill emphasizes the importance of secure custody, requiring the Treasurer to implement stringent security protocols and either hold the assets directly or through exchange-traded products. Notably, the bill also opens the door for residents to donate digital assets to the reserve.
South Carolina joins a growing number of states, including Texas, Utah, and North Carolina, exploring similar strategies. According to Bitcoin Laws, 35 states are now considering or have introduced Bitcoin-related legislation, signaling a broader shift in how governments view digital assets in public finance.
Meanwhile, Senator Ted Cruz is championing Texas as a global hub for Bitcoin innovation in the U.S., aligning the state’s resources with the growing digital asset industry. With three Bitcoin mining facilities in West Texas, Cruz is merging advocacy with action.
