South Carolina lawmakers propose "Strategic Digital Asset Reserves Act" that will allow 10% of state funds to invest in Bitcoin

PANews March 28th news, according to financefeeds, South Carolina Rep. Jordan Pace proposed the "Strategic Digital Asset Reserves Act" (Bill H4256), which will allow the state to establish a reserve of up to 1 million bitcoins if passed. The bill, introduced earlier this month in the state legislature, authorizing the South Carolina Treasury Secretary to invest up to 10% of unused state funds in digital assets, including Bitcoin. Investment funds will come from various funds, such as general funds and budget stable reserve funds. However, the total amount of digital assets held by the state shall not exceed 3% of South Carolina's overall investment portfolio.

The bill requires state finance ministers to ensure that all assets are stored in highly secure custodial solutions, including refrigeration methods that provide cyber threat protection. The bill also requires that all public addresses reserved must be published on the official state website so that residents can verify transactions and assets. In addition, the bill introduces a public donation mechanism that allows South Carolina residents to donate digital assets to reserves. The rule is designed to promote community engagement and encourages wider adoption of Bitcoin in the state.

The bill is currently under review and requires approval from the South Carolina Legislature to take effect. Once signed into law, the bill will come into effect and will be valid on September 1, 2035 unless renewed by the legislator.