South Carolina Governor Signs S.163 Protecting Crypto Rights and Banning CBDCs

U.S. states have increasingly moved to define the legal boundaries for digital asset use, mining and central bank digital currencies, or CBDCs. South Carolina's S.163 protects the use of self-custody and hardware wallets, as well as crypto payments for lawful goods and services. It also bars state and local governments from imposing additional taxes or fees solely because a payment uses digital assets. Its CBDC ban applies only to state and local government agencies.

S.163 was introduced on Jan. 14, 2025. It passed the state Senate by 38–1 and the state House by 110–1 on May 5, 2026. Governor Henry McMaster signed it on May 19, and it took effect immediately as Act No. 208. The law bars government agencies from accepting or requiring CBDC payments or participating in Federal Reserve tests, while protecting mining and node operations. Mining facilities using more than 1 megawatt of electricity must still avoid adding strain to the power grid.