Committee backs bill to regulate digital assets, limit CBDC testing and protect mining grid

Governor Smith, presenting the committee report, described Senate Bill 163 as a comprehensive framework for digital assets and mining.

"This amends the South Carolina code of laws by adding chapter 47, regulating digital currency and digital assets activities," Governor Smith said. He told the committee the bill would bar state and local governments from requiring or accepting central bank digital currency or participating in testing, allow voluntary use of digital currency, and ensure digital assets are not taxed or regulated differently than traditional U.S. currency during transactions.

The bill also seeks to prevent discriminatory zoning or tax treatment of digital-currency operations, set limits and reporting requirements for digital-asset mining to protect the electrical grid, clarify that certain mining and staking activities do not require specific licenses and are not securities, and give the attorney general authority to prosecute fraudulent mining or staking services. Smith said stakeholders including the banking association and the South Carolina Municipal Association had signed on and that no opponents were known in committee.

With no questions raised, the committee adopted a favorable report and will send SB 163 to the House floor.