Surprise Move from South Carolina: State Treasury Investment in Bitcoin on the Way
The state of South Carolina is preparing to invest public funds in Bitcoin. A bill proposed by State Representative Jordan Pace suggests allocating 10% of the state budget to digital assets, with a focus on Bitcoin.
Titled the "Strategic Digital Asset Reserve Act," the proposal sets a maximum limit of 1 million BTC for Bitcoin purchases and includes measures such as cold wallet storage, audit mechanisms, and regular reporting to ensure investment security. While Bitcoin is the initial focus, the bill hints that other digital assets may also be included in the future.
Representative Pace stated that this move aims to make the state's economic reserves more resilient against inflation.
South Carolina Is Not Alone in Seeing Bitcoin as a Reserve Asset
This proposal is part of a broader trend across the U.S. Donald Trump previously approved a plan to convert crypto assets seized from crimes into a national Bitcoin reserve. Shortly afterward, Senator Cynthia Lummis submitted a bill to Congress aiming to establish a federal reserve of 1 million BTC.
South Carolina’s plan also introduces limitations, such as ensuring the Bitcoin investment does not exceed 3% of the total portfolio.
What Are Other States Doing?
Many states across the U.S. are exploring ways to incorporate digital assets into public finance:
- Texas has been one of the fastest movers, already passing a Bitcoin reserve law.
- Arizona and Oklahoma have enacted regulations for managing crypto assets seized from crimes.
- Kentucky is supporting the mining industry through tax incentives.
In contrast, Wyoming, Montana, North Dakota, South Dakota, and Pennsylvania have temporarily backed away from similar initiatives, citing market volatility as the main concern.
With this move, South Carolina has further strengthened the notion that Bitcoin can have a place in state treasuries. The presence of cryptocurrencies in public budgets is no longer just a concept—it is rapidly becoming the subject of concrete policy-making.
