South Carolina bill proposes Bitcoin reserve with 1M BTC cap

A new bill presented in South Carolina offers the creation of a bitcoin reserve managed by the State with a ceiling of 1 million BTC.

Placed on March 27, the law on the reserve of digital assets of Caroline du Sud aims to give the treasurer of the State the power to hold Bitcoin (BTC) and other digital assets such as inflation coverage. According to the InvoiceInflation has reduced the purchasing power of pension funds and assets managed by the State.

To protect its finances, South Carolina wants to diversify them. Bitcoin is considered as possible hedge against economic volatility. The proposed digital asset reserve would allow the State to own and manage Bitcoin while allowing South Carolinians to voluntarily give digital assets.

The bill establishes clear investment guidelines, requiring safe storage by cold portfolios or certified guards and a cap of digital asset assets at 10% of total funds under management. In addition, the State is not allowed to contain only a maximum of 1 million BTC.

If it is adopted, the treasurer of the state of South Carolina would be authorized to invest unused or undertaken of sources such as the General Fund and the Budget Stabilization Reserve in the Fund reserve. The Treasurer of the State would be required to publish the public addresses of the reserve assets to maintain transparency and allow citizens to confirm transactions.

The proposal comes while South Carolina pushes to reverse its position on the regulation of cryptography. In a position on March 27 on X, the chief legal director of Coinbase, Paul Grewal, revealed that the State had abandoned its trial against the cleansing services of Coinbase, paving the way for exchange to relaunch the milestone for the residents.

Grewal noted that Southern Carolina users have lost nearly $ 2 million in awards due to the legal battle and celebrated the dismissal of the trial as a victory for consumer rights. He stressed that 52 million Americans have a crypto and needed clear rules and consumer protection. Grewal congratulated South Carolina for her decision and said he hoped that other states with ignition prohibitions will follow.