Bill > H4256

This bill establishes the Strategic Digital Assets Reserve Act in South Carolina, authorizing the State Treasurer to invest up to 10% of funds from certain state accounts (like the General Fund and Budget Stabilization Reserve Fund) in digital assets, primarily Bitcoin. The legislation recognizes digital assets as a potential hedge against inflation and a way to diversify state financial portfolios. Key provisions include limiting total digital asset holdings to 3% of the state's investment portfolio (with a maximum of one million Bitcoins), requiring secure custody solutions like cold storage, mandating biannual public reporting of digital asset holdings, and allowing South Carolina residents to voluntarily donate digital assets to the reserve. The bill defines critical terms such as "digital asset," "cold storage," and "secure custody solution," and requires regular independent audits and security testing of the digital asset holdings. The State Treasurer must develop policies to protect these assets, and the legislation prohibits any actions that could disrupt or undermine digital asset networks. The act will take effect upon gubernatorial approval and is set to expire on September 1, 2035, providing a structured and cautious approach to state digital asset investment.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=4256&session=126&summary=B