SC Proposes $1M Bitcoin Investment
South Carolina Considers Major Bitcoin Investment
South Carolina lawmakers introduced the "Strategic Digital Assets Reserve Act" (H4256) on Thursday. This bill would allow the state treasurer to invest in Bitcoin and other digital assets.
Key Provisions of H4256
- Investment Cap: A maximum of 10% of total funds under management, with a Bitcoin limit of one million BTC.
- Secure Custody: Digital assets must be held securely, either directly by the state treasurer, a qualified custodian, or in exchange-traded products (ETPs) from regulated institutions. Lending is prohibited.
- Transparency and Auditing: Biennial reporting of holdings (in USD value) is required, along with the public disclosure of all digital asset addresses on an official state website. Regular independent audits are mandated.
- Public Donations: South Carolina residents can donate digital assets to the reserve through an approved vendor.
- Effective Period: The legislation would be in effect until September 1, 2035.
The bill highlights Bitcoin's potential as a hedge against inflation and economic uncertainty, emphasizing its role in diversifying the state's investment portfolio. This aligns with a growing trend in the US, with 24 out of 50 states now having introduced similar Bitcoin reserve bills, according to Bitcoin Law.
Beyond Bitcoin: S0163 and Digital Asset Regulation
Separately, South Carolina also introduced S0163, focusing on broader digital asset regulations. This bill aims to prevent government acceptance of CBDCs and promotes the use of digital assets for transactions, while addressing concerns about cryptocurrency mining's environmental impact and seeking to encourage rural development via mining.
Codeum's Note: As a blockchain security and development platform, Codeum emphasizes the importance of secure smart contract implementation and robust auditing practices for any large-scale cryptocurrency investment. Our services, including smart contract audits, tokenomics consultation, and custom DApp development, can help ensure the security and success of such initiatives. We are committed to fostering trust and transparency in the blockchain industry.