Palmetto State Enacts Legislation Prohibiting Government Use of Central Bank Digital Currencies for Transactions
South Carolina Governor Henry McMaster signed Senate Bill 163 into law on 20 May 2026. The law creates a legal framework for cryptocurrency use in the state. It covers individuals, businesses, and state institutions. Under the new rules, no person or business may be prohibited from accepting digital assets — cryptocurrencies stored and transferred on a blockchain — as payment for goods or services. The law also exempts cryptocurrency payments from any additional state or local taxes, fees, or assessments.
State agencies banned from using CBDCA central bank digital currency (CBDC) is a digital form of a national currency issued directly by a central bank. S. 163 prohibits every South Carolina state agency, board, commission, department, and political subdivision from accepting or requiring payment in a CBDC. The law also bans these bodies from participating in any test of a CBDC conducted by the Board of Governors of the Federal Reserve System or any branch of the federal government.
Crypto mining receives legal protections statewideCrypto mining is the process of using computers to validate transactions on a blockchain and earn newly created digital currency as a reward. S. 163 prohibits local governments from applying discriminatory zoning rules to mining businesses. Local authorities may not impose sound-level limits on mining operations that go beyond the general noise pollution rules that apply to the surrounding area. The law also exempts mining from money transmitter licensing requirements, which typically apply to businesses that transfer funds on behalf of others.
Kentucky passed a similar law in March 2025South Carolina is not the first US state to enact this type of legislation. In March 2025, Kentucky signed House Bill 701 into law. That law guarantees individuals the right to hold and manage crypto assets in self-hosted wallets — personal storage devices that give users direct control of their funds without relying on a third party. Kentucky's law also bans local governments from passing rules that discriminate specifically against crypto mining operations. A central bank digital currency (CBDC) is a digital form of a national currency issued directly by a central bank. S. 163 prohibits every South Carolina state agency, board, commission, department, and political subdivision from accepting or requiring payment in a CBDC. The law also bans these bodies from participating in any test of a CBDC conducted by the Board of Governors of the Federal Reserve System or any branch of the federal government.
Crypto mining receives legal protections statewideCrypto mining is the process of using computers to validate transactions on a blockchain and earn newly created digital currency as a reward. S. 163 prohibits local governments from applying discriminatory zoning rules to mining businesses. Local authorities may not impose sound-level limits on mining operations that go beyond the general noise pollution rules that apply to the surrounding area. The law also exempts mining from money transmitter licensing requirements, which typically apply to businesses that transfer funds on behalf of others.
Kentucky passed a similar law in March 2025South Carolina is not the first US state to enact this type of legislation. In March 2025, Kentucky signed House Bill 701 into law. That law guarantees individuals the right to hold and manage crypto assets in self-hosted wallets — personal storage devices that give users direct control of their funds without relying on a third party. Kentucky's law also bans local governments from passing rules that discriminate specifically against crypto mining operations. Crypto mining is the process of using computers to validate transactions on a blockchain and earn newly created digital currency as a reward. S. 163 prohibits local governments from applying discriminatory zoning rules to mining businesses. Local authorities may not impose sound-level limits on mining operations that go beyond the general noise pollution rules that apply to the surrounding area. The law also exempts mining from money transmitter licensing requirements, which typically apply to businesses that transfer funds on behalf of others.
Kentucky passed a similar law in March 2025South Carolina is not the first US state to enact this type of legislation. In March 2025, Kentucky signed House Bill 701 into law. That law guarantees individuals the right to hold and manage crypto assets in self-hosted wallets — personal storage devices that give users direct control of their funds without relying on a third party. Kentucky's law also bans local governments from passing rules that discriminate specifically against crypto mining operations. South Carolina is not the first US state to enact this type of legislation. In March 2025, Kentucky signed House Bill 701 into law. That law guarantees individuals the right to hold and manage crypto assets in self-hosted wallets — personal storage devices that give users direct control of their funds without relying on a third party. Kentucky's law also bans local governments from passing rules that discriminate specifically against crypto mining operations. Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment. All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Coinpaprika is not liable for any losses resulting from the use of this information.