South Carolina H 4256: Rev. Rickey Letson and family, service

Bill Text

2025-2026 Bill 4256 Text of Previous Version (Mar. 27, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4256

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS 
BY ENACTING THE "STRATEGIC DIGITAL ASSETS RESERVE ACT OF SOUTH CAROLINA" BY 
ADDING ARTICLE 5 TO CHAPTER 5, TITLE 11 SO AS TO PROVIDE THAT THE STATE 
TREASURER MAY INVEST IN CERTAIN DIGITAL ASSETS AND TO PROVIDE THAT THE STATE 
TREASURER SHALL DEVELOP CERTAIN POLICIES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 
1. This act may 
be cited as the "Strategic Digital Assets Reserve Act of South Carolina."

SECTION 2. The General Assembly of South Carolina finds that:

 (1) 
Inflation has eroded the purchasing power of assets held in state funds managed 
by the State Treasurer, as well as state retirement funds.

 (2) 
Although South Carolina does not have direct control over the national money 
supply, policies that influence inflation, or the debt issued by the federal 
government, it is responsible for safeguarding the state's financial resources 
against the impacts of inflation and other economic uncertainties.

 (3) 
Bitcoin, as a decentralized digital asset, and other digital assets offer 
unique properties that can act as a hedge against inflation and economic 
volatility. It also helps to diversify the state's funds.

 (4) 
South Carolina should have access to digital assets such as Bitcoin to protect 
against inflation and diversify its portfolio.

 (5) 
The creation of the Digital Assets Reserve will allow the State to own digital 
assets, including Bitcoin, as a financial asset, and for South Carolinians to 
voluntarily donate digital assets to promote a shared ownership and community 
investment in South Carolina's future.

SECTION 3. Chapter 5, Title 11 of the 
S.C. Code is amended by adding:

Article 5

Strategic 
Digital Assets Reserve

 Section 
11-5-500. As used in this article:

 (1) "Bitcoin" means the decentralized 
digital currency launched in 2009, based on Satoshi Nakamoto's white paper, 
entitled "Bitcoin: A Peer-to-Peer Electronic Cash System."

 (2) "Cold storage" means a method of 
storing private keys required to transact in digital assets, including Bitcoin, 
with a nexus to a secure location, protected from unauthorized access and 
isolated from any network connections.

 (3) "Digital asset" means a virtual 
currency, cryptocurrency, or natively electronic asset, including Bitcoin, that 
confers economic, proprietary, or access rights or powers. Rules will provide 
for a list of acceptable digital assets that may include, but not be limited to, 
Bitcoin that may be updated.

 (4) "Exchange-traded product" means a 
financial instrument that the Securities and Exchange Commission, the 
Commodities Future Trading Commission, or the State of South Carolina 
Department of Banking and Securities approves and is traded on a regulated 
exchange.

 (5) "Private key" means a unique 
element of cryptographic data used for signing transactions on a blockchain and 
is known to the owner of the private key.

 (6) "Public address" means a 
cryptographic identifier used to receive digital assets on a blockchain 
network.

 (7) "Secure custody solution" means a 
technological product or blended product and service that meets certain 
criteria, including having a cryptographic private key that secures a digital 
asset, which is exclusively known by and accessible by a government entity. The 
provider of the secure custody solution shall implement a disaster recovery 
protocol that ensures customer access to assets in the event the provider 
becomes unavailable. The secure custody solution shall undergo regular code 
audits and penetration testing from audit firms and any identified 
vulnerabilities are promptly remedied.

 (8) "Qualified custodian" means a federal 
or state-chartered bank, trust company, or special purpose depository 
institution or a company regulated by the United States that has custody of the 
digital assets for an approved exchange-traded product.

 Section 
11-5-510. (A) The State Treasurer 
may invest in digital assets including, but not limited to, Bitcoin with money 
that is unexpended, unencumbered, or uncommitted and deposited in any of the 
following funds:

 (1) the General Fund;

 (2) the Budget Stabilization Reserve 
Fund; or

 (3) any other investment fund managed 
directly by the State Treasurer.

 (B) The State Treasurer may invest a 
portion of unencumbered funds in digital assets, provided the allocation aligns 
with approved financial management principles, including secure custodial 
solutions and regular reporting.

 (C) The amount of money that the State 
Treasurer may invest in digital assets from a fund specified in this section 
may not exceed ten precent of th