Bitcoin might soon be part of South Carolina’s balance sheet.
Introduced by state Rep. Jordan Pace, the “Strategic Digital Assets Reserve Act,” proposes that the state treasurer be allowed to allocate up to 10% of certain public funds into digital assets—starting with Bitcoin.
The House Bill 4256, or HB4256, seeks to authorize the state treasurer to purchase and hold Bitcoin as a strategic reserve within key state-managed funds, including the General Fund and Budget Stabilization Reserve Fund.
With a maximum cap of one million BTC, the bill outlines a secure framework for custody, mandates regular public audits, and allows for voluntary BTC donations from residents.
While BTC is the only digital asset named in the bill, it explicitly states the reserve “may include, but not be limited to, Bitcoin,” allowing for the future inclusion of other cryptocurrencies through updated rules.
“Proud to file legislation that empowers SC to follow Donald Trump’s lead to create a state level strategic crypto reserve,” Pace said on X, formerly Twitter, Thursday. “This gives the Treasurer new tools to protect taxpayer dollars from inflation,” he added..
But there have been differing opinions on whether the U.S. should spend money to acquire BTC or stock it in a “budget neutral” way.
Proud to file legislation that empowers SC to follow @realDonaldTrump’s lead to create a state level strategic crypto reserve. This gives the Treasurer new tools to protect taxpayer dollars from inflation https://t.co/JqUuBw243D
Sen. Cynthia Lummis (R-WY) followed up by introducing the BITCOIN Act, which would require the U.S. government to acquire up to one million BTC—worth about $80 billion—over a five-year period.
South Carolina’s bill lays out a comprehensive legal structure that includes definitions of cold storage, qualified custodians, and exchange-traded products.
It mandates biennial reports, regular independent security audits, and that any digital asset holdings not exceed 3% of the state’s overall investment portfolio.
The bill would expire on September 1, 2035, unless renewed, giving the state a decade to experiment with incorporating Bitcoin into its public finance strategy.
States' uneven embrace of Bitcoin
South Carolina’s proposed legislation is also part of a wider nationwide trend of states exploring the viability of adding Bitcoin to their reserves.
Arizona’s House recently advanced two major digital asset bills to a full vote, including one that allows the treasurer and retirement system to invest in Bitcoin and another to manage crypto seized from criminal cases.
Texas lawmakers passed Senate Bill 21 Bitcoin strategy reserve bill—SB21—earlier this month, which now awaits the Governor vote.
In Oklahoma, House Bill 1203 passed overwhelmingly and is awaiting Senate review. Kentucky recently passed legislation protecting Bitcoin self-custody and offering tax incentives for miners.
HB 1203 Bitcoin Strategic Reserve has passed the House in Oklahoma 77-15! 🥳🥂
— Oklahoma Bitcoin Association (@oklahomabtc) March 24, 2025
In Utah, Bitcoin legislation advanced, though references to a strategic reserve were dropped at the last minute.
Some states, however, are steering clear of the Bitcoin reserve trend—for now.
Wyoming lawmakers in Sen. Lummis’s home state recently saw their Bitcoin reserve proposal collapse in committee. Wyoming Gov. Mark Gordon has since distanced himself from the effort, stressing a more cautious approach.
Wyoming Governor Mark Gordon distanced himself Wednesday from a failed effort by legislators in his state to establish a Bitcoin reserve, emphasizing he’s focused on more practical crypto initiatives.
“Wyoming has been pretty methodical in how we approach this,” Gordon told Decrypt at the DC Blockchain Summit. “Bitcoin has been incredibly volatile.”
“It’s been a bit of a learning curve,” he added, regarding legislators’ approach to bold initiatives like the Bitcoin reserve.
Back in January, Wyom...
“Bitcoin has been incredibly volatile,” he told Decrypt at the DC Blockchain Summit, adding, “It’s been a bit of a learning curve.”
In-kind redemptions appear more likely to become part of spot Bitcoin and Ethereum exchange-traded funds, Bloomberg ETF analyst James Seyffart said Tuesday, citing a flurry of filings from issuers to the U.S. Securities and Exchange Commission.
Five issuers with Bitcoin and Ethereum ETFs on the CBOE have recently filed amendments to their prospectuses, Seyffart said in a social media post on Tuesday. They include Invesco Galaxy, Ark 21Shares, VanEck, WisdomTree, and Fidelity.
The analyst note...
The U.S. Department of Justice has dropped an investigation into Jesse Powell, the co-founder of crypto exchange Kraken, he said Tuesday.
Powell acknowledged the news on X, writing: "Very glad to have this behind me."
The New York Times in 2023 originally broke the news that FBI agents had raided the crypto entrepreneur's Los Angeles house over claims that he hacked and cyber-stalked his own nonprofit arts group.
Very glad to have this behind me. It never made sense but neither does the @rstorm...
A London court has convicted four people in the botched kidnapping and wrench attack of a Belgian barber. The group lured him to London with promises of luxury and companionship after he made out that he was sitting on a Bitcoin fortune.
But to their surprise, when his attackers demanded he give them access to his funds, the victim revealed he had just over $9 (£6.71) in his crypto wallet. Stunned, the kidnappers lowered their demand to $67,000 (about £50,000), then eventually settled for $2,700...
