The proposal aims to create a strategic reserve of digital assets, with a maximum of 1 million bitcoin.
Representative Jordan Pace of South Carolina has introduced a bill (Strategic Digital Assets Reserve Act) that would allow the state to invest in Bitcoin and other digital assets. The bill, known as H4256, permits the state treasurer to allocate up to 10% of state funds into digital assets, with a cap of 1 million bitcoins.
The bill states:
“Bitcoin, as a decentralized digital asset, and other digital assets offer unique properties that can serve as a hedge against inflation and economic volatility. They also help diversify the state’s funds.”
The proposed legislation outlines detailed guidelines for managing digital assets, ensuring security, transparency, and proper oversight. Digital assets will be held by the South Carolina treasurer through a qualified custodian or regulated financial institutions. The bill emphasizes that digital assets will not be allowed to be lent out.
Transparency and auditing
The bill mandates that public addresses for all digital assets held by the state be published on an official website. Additionally, biennial reports on the value of the digital assets will be submitted, allowing taxpayers to track the investment’s progress. Independent audits will also be conducted to ensure proper management of the digital assets.
If approved, the legislation will remain in effect until September 1, 2035.
