South Carolina’s Bold Move: Proposes 1M BTC State Reserve

South Carolina’s Bitcoin reserve plans have sparked quite a bit of interest as lawmakers have just introduced some new legislation to establish state-run Bitcoin holdings. Filed on March 27, and still being discussed right now, the Strategic Digital Assets Reserve Act proposes a cap of 1 million BTC, which is positioning the state at the forefront of government crypto holdings in the United States at the time of writing.

Bitcoin Reserve: South Carolina’s Strategy & Market Impact

The South Carolina Bitcoin reserve legislation would essentially give the state treasurer authority to hold Bitcoin and also other digital assets as a hedge against inflation. According to the bill itself, inflation has unfortunately reduced the purchasing power of retirement funds and state-managed assets over time, making Bitcoin state reserve strategies increasingly attractive to government officials and financial planners alike.

Framework and Security

The proposed Bitcoin state reserve establishes several clear investment guidelines that would need to be followed:

• Mandatory storage through cold wallets or certified custodians for extra security
• Digital assets limited to just 10% of total funds under management
• Maximum threshold of about 1 million BTC

The state treasurer would be permitted to use uncommitted funds from various sources, such as the General Fund and also the Budget Stabilization Reserve Fund. Additionally, transparency measures require publishing public addresses of all reserve holdings for verification purposes.

Regulatory Shifts

This South Carolina Bitcoin reserve initiative coincides with changing crypto regulation USA approaches that we’re seeing develop right now. On March 27, Coinbase chief legal officer Paul Grewal revealed:

Grewal also noted:

Economic Impact

By establishing a Bitcoin state reserve, South Carolina aims to protect against economic volatility that has affected traditional assets in recent years. The approach aligns with Bitcoin adoption 2025 trends that are currently being observed across various government entities and financial institutions.

The 1 million BTC cap represents approximately 4.76% of Bitcoin’s total supply, which would make South Carolina’s Bitcoin reserve one of the largest government crypto holdings worldwide if it’s fully implemented as planned.

National Context

The South Carolina Bitcoin reserve proposal emerges amid evolving crypto regulation USA frameworks that are still taking shape. While federal regulations remain in development, and somewhat unclear, individual states are establishing their own approaches to digital assets. The Bitcoin state reserve model could inspire similar government crypto holdings initiatives nationwide in the coming months.

As Bitcoin adoption strategies continue developing in 2025, South Carolina’s Bitcoin reserve legislation will be closely watched by market observers, policymakers, and also citizens who are interested in cryptocurrency’s expanding role in public finance and investment strategies.