The state of South Carolina moves forward with innovative Bitcoin integration through new laws which will revolutionize public fund handling.
Bitcoin Reserve Legislation
The Strategic Digital Assets Reserve Act proposed by Representative Jordan Pace grants permission to the State Treasurer to place 10% of state funds into Bitcoin investments. The proposed law establishes asymmetric maximum BTC holdings at 1 million and requires the government to display wallet address information.
Investment Strategy
The bill proposes to move funds from two existing financial sources namely General Fund and Budget Stabilization Reserve Fund. Resident Bitcoin donations under this bill are voluntary while cold wallets and certified custodians serve as binding asset storage requisites.
Coinbase Legal Developments
During this time South Carolina decided to stop its legal pursuit of Coinbase through a lawsuit about its stake service possible violations of security law. The South Carolina authorities took this decision as state legislatures in adjacent jurisdictions and the SEC’s recent court case demonstrated comparable arrangements.
Broader Context
South Carolina joined the increasing number of states that show interest in digital assets because. However, they see them as a defense against both inflation and economic turmoil. The legal representatives at Coinbase believe this development represents a beneficial moment for cryptocurrency growth.
Bitcoin’s State-Level Strategic Shift
South Carolina leads an industry change by recognizing Bitcoin as a valid financial asset which could influence other states to restructure their digital asset strategies.
