• South Carolina legalized stronger protections for Bitcoin self-custody rights.
• The law blocks discriminatory crypto taxes and restrictive zoning measures.
• State agencies are banned from using or testing central bank digital currencies.

South Carolina Governor Henry McMaster officially signed Senate Bill 163 into law. The new statutory change, people in the industry say, is a real milestone towards crypto sovereignty and the self-direction stuff that comes with it.

Protecting Local Bitcoin Mining Innovations

Governor Henry McMaster signed S. 163 into law, which amends the South Carolina Code of Laws to establish a crypto-friendly environment for users and businesses.

According to the new law, people and businesses are not barred from accepting digital assets as payment for products and services, or from utilising self-hosted or physical wallets to self-manage their digital asset holdings. 

More specifically, the framework defends individual rights related to self-custody and participation in the Bitcoin network. 

That legal cover helps create a safer, more predictable environment for digital asset miners. 

That said, South Carolina also sets reasonable operational boundaries for big, large-scale facilities. 

For example, mining operations must comply with defined electrical grid stability requirements, and it’s not just a suggestion. 

Those grid limits aim to prevent energy strain and, in practice, authenticate legitimate participants in the network.

美国南卡罗来纳州州长已签署 S.163 法案。该法案将保护比特币自托管权利，禁止对比特币实施歧视性税收，并为该州工作量证明（PoW）挖矿活动提供法律保障。该法案被视为美国州层面围绕比特币持有、使用与挖矿权利进一步明确化的最新进展。（Cointelegraph）

— 吴说区块链 (@wublockchain12) May 20, 2026

Eradicating Unfair Bitcoin Taxation Metrics

The new law prescribes stringent regulatory equality for all digital currencies. 

According to the text, local governments cannot impose discriminatory zoning laws. Thus, bitcoin businesses receive the same zoning benefits as conventional businesses.

Furthermore, the legislation fully abates discriminatory tax treatment of digital assets. The law ensures that rates are the same as with traditional legal tender. 

Thus, there is no additional financial penalty for digital transactions between states.

This parity makes accounting processes easier for corporations implementing blockchain. 

As a result, the rate of merchant adoption is expected to accelerate considerably over the next few fiscal quarters. 

This protective legal shield removes the primary barriers to mainstream corporate utility.

Banning Central Bank Digital Currencies

The robust legislative package also addresses growing concerns about state-backed digital tokens. 

In particular, the bill bans state agencies from accepting CBDCs. 

The legislation also establishes a supportive, transparent regime for users of digital assets, and it does so in a fairly direct way. 

This clear prohibition is positioned to shield citizens from invasive federal tracking mechanisms. 

Additionally, South Carolina completely bars involvement in regional CBDC testing programs. 

Rather, under the law, citizens are entitled to use cryptocurrencies freely and voluntarily. The specific stipulation ensures the free exercise of individual liberty in normal trade.

The law gives a permanent right to the private use of decentralized assets such as Bitcoin. 

It thereby builds an effective wall between the state’s financial control systems and the federal government’s. 

This historic development positions South Carolina as a premier hub for financial liberty.

In the end, a regulatory change that brings much-needed clarity to global investors. 

Additionally, the Bank of Korea has announced plans to build a payment system centred on CBDC and deposit tokens.