South Carolina Considers Bitcoin Reserve and Drops Coinbase Lawsuit

On March 27, South Carolina lawmakers introduced the Strategic Digital Assets Reserve Act (H4256), proposing a Bitcoin reserve to protect public funds from inflation. The bill allows the State Treasurer to allocate up to 10% of state funds to Bitcoin, capped at 1 million BTC, sourced from funds like the General Fund. It mandates public disclosure of wallet addresses for transparency and allows voluntary Bitcoin contributions, with strict cold wallet storage requirements. Simultaneously, South Carolina dropped its June 2023 lawsuit against Coinbase over alleged securities violations tied to staking services, following an agreement with the exchange. Coinbase noted South Carolina residents missed nearly $2 million in staking rewards during the dispute. This decision mirrors Vermont's earlier move and follows the SEC ending its case against Coinbase in February.