South Carolina’s Bitcoin Bill: A Million BTC Cap and a Dash of Chutzpah

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Imagine, if you will, a state so bold, so daring, that it decides to dabble in the world of cryptocurrencies. Yes, South Carolina, the very place where sweetness and light often walk hand in hand with a dash of Southern charm, has introduced a bill proposing a state-run Bitcoin reserve. And not just any reserve, but one with a cap of 1 million BTC. 🤑

Filed on Mar. 27, the Strategic Digital Assets Reserve Act, a bill so audacious it makes you wonder if the legislators had been swigging mint juleps a tad too liberally, seeks to give the state treasurer the authority to hold Bitcoin and other digital assets. According to the bill, inflation has been as friendly to the state’s coffers as a viper in a henhouse. The purchasing power of retirement funds and state-managed assets has taken a hit, and the state wants to do something about it. 🐍 хозяйство

To protect its finances, South Carolina, ever the pragmatist, wants to diversify. Bitcoin, you see, is viewed as a possible hedge against economic volatility. The proposed Digital Assets Reserve would enable the state to own and manage Bitcoin while also allowing South Carolinians to voluntarily donate digital assets. It’s like asking your neighbor to chip in some Bitcoin for the town’s lemonade stand. 🍋🚀

The bill sets clear investment guidelines, requiring safe storage through cold wallets or certified custodians. It also caps holdings of digital assets at a mere 10% of total funds under management. And just to ensure no one gets too carried away, the state is only permitted to hold a maximum of 1 million BTC. It’s like telling a kid with a piggy bank, “Sure, you can have all the marbles you want, but only up to a million.” 🔒💰

If passed, the state treasurer would be allowed to invest unused or uncommitted funds from sources like the General Fund and Budget Stabilization Reserve Fund into the reserve. The state treasurer would be required to publish public addresses of the reserve’s holdings, ensuring transparency and allowing citizens to confirm transactions. It’s like putting the state’s finances on a digital bulletin board for all to see. 📢

And as if this weren’t enough excitement for one day, South Carolina has decided to reverse its stance on crypto regulation. On Mar. 27, Coinbase’s chief legal officer, Paul Grewal, tweeted that the state has dropped its lawsuit against Coinbase’s staking services. This move paves the way for the exchange to relaunch staking for South Carolina residents. 🕊️🎉

The dominoes keep falling. South Carolina just joined Vermont to dismiss its unfounded staking lawsuit against @Coinbase. Staking will very soon be back for Coinbase users in South Carolina. This is not just a victory for us, but for American consumers and we hope it’s a sign of…

— paulgrewal.eth (@iampaulgrewal) March 27, 2025

Grewal noted that South Carolina users lost nearly $2 million in staking rewards due to the legal battle, and he celebrated the lawsuit’s dismissal as a win for consumer rights. He pointed out that 52 million Americans own crypto and need clear rules and consumer protections. Grewal praised South Carolina for its decision and said he hopes other states with staking bans will follow. It’s like a game of musical chairs, but with legal documents and digital assets. 🎶שבת

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2025-03-28 09:10