South Carolina Governor Henry McMaster has signed Senate Bill 163 into law, marking another step in the country's journey towards comprehensive crypto regulation. The new legislation prohibits state departments from using or participating in Central Bank Digital Currency (CBDC) projects implemented by the Federal Reserve or federal government.
The bill defines CBDCs as digital money issued by governments, distinguishing them from privately-issued stablecoins, which remain valid under the regulatory guidelines. This distinction aims to draw a clear line between government-controlled and user-held digital assets on blockchains.
The law also guarantees self-custody rights for individuals and companies, allowing users to maintain control over their digital wallets without unwarranted interference from state authorities. Additionally, the legislation clarifies rules for mining and staking operations, prohibiting discriminatory zoning regulations and unreasonable noise restrictions.