South Carolina is positioning itself as a pioneer in state-level Bitcoin adoption with House Bill H4256. This proposed legislation would allow the state to invest up to 10% of its managed funds in Bitcoin, aiming to hedge against inflation and diversify financial reserves.
NEW: SOUTH CAROLINA Bitcoin Reserve Bill
H4256 would allow the State Treasurer to invest 10% of state funds into Bitcoin.
The Bitcoin reserve would have a hard ceiling of 1 million BTC.
Sponsored by Rep. Jordan Pace (@Jscottpace) pic.twitter.com/b1XXTSER4I
— Bitcoin Laws (@Bitcoin_Laws) March 27, 2025
The Bitcoin reserve would have a hard cap of one million BTC, potentially creating a significant state-held asset depending on market value. Beyond safeguarding against economic uncertainty, the move signals a long-term strategy to modernize state financial management.
To ensure security, the bill mandates strict custody measures. The Bitcoin holdings must be stored either directly by the state using secure methods, through licensed custodians, or via regulated exchange-traded products. Furthermore, lending or speculative use of the state’s Bitcoin holdings is strictly prohibited.
A key aspect of the bill is transparency. The government must publicly disclose the Bitcoin addresses associated with the reserve, allowing citizens to independently verify holdings. Additionally, regular reports on the value and management of the Bitcoin reserve are required.
An innovative element of the proposal is the option for residents to voluntarily contribute Bitcoin donations to the state reserve. This could establish a new model for collective wealth-building, allowing citizens to take an active role in their state’s financial stability.
Introduced in March 2025, the bill is currently under review by the appropriate legislative committee. If passed, South Carolina would become one of the first U.S. states to incorporate Bitcoin into its official financial strategy, potentially setting a precedent for others considering similar moves.
With this bold initiative, South Carolina demonstrates that Bitcoin is more than just a speculative asset—it has the potential to serve as a serious financial instrument in government policy. The coming months will determine whether this groundbreaking approach gains legislative approval.
Bitcoin statt Dollar? South Carolina plant millionenschweren Krypto-Reservefonds!
