South Carolina sets rules for digital asset payments and mining

State agencies and local governments must not accept or require central bank digital currency payments or take part in federal tests of that currency. The rule covers state agencies and local governments. Central bank digital currency means digital money issued or directly handled by the Federal Reserve or a federal agency; it excludes privately issued digital assets backed by legal tender or government treasuries. The law took effect upon the governor’s approval on May 19, 2026.

Individuals and businesses may accept digital assets for legal purchases and use self-hosted or hardware wallets to keep control of their assets. The payment rule covers legal goods and services. A self-hosted or hardware wallet is a digital interface or physical device that lets the owner keep independent control of the assets. State and local governments may not add a tax, withholding, assessment, or charge solely because someone pays with a digital asset. They may still impose amounts that would apply if the transaction used U.S. legal tender. The law took effect upon the governor’s approval on May 19, 2026.

Local governments must generally apply the same business restrictions and noise limits to digital asset mining businesses as to other businesses in industrial zones, and follow notice and comment procedures before changing their zoning. A digital asset mining business is an individual or company whose mining facilities in South Carolina together draw more than one megawatt of power. A mining business may appeal a zoning change in court. The law took effect upon the governor’s approval on May 19, 2026.

Digital asset mining businesses must operate without adding stress to their connected electrical grid and, upon request, give the Public Service Commission a power purchase agreement. This applies to South Carolina mining businesses whose facilities together draw more than one megawatt of power in the state. The agreement must show that the business can reduce power use during periods of grid stress. The law took effect upon the governor’s approval on May 19, 2026.

Certain digital asset activities do not require a money transmitter license; a business offering mining or staking as a service is not offering a security under state law; and the Attorney General may bring fraud cases over false claims to offer those services. The license rule applies to individuals or businesses taking part in the listed activities. A node is software that helps maintain or update a blockchain, without deciding which transactions users initiate. The license exception covers mining, running blockchain nodes, developing blockchain software, and exchanging digital assets for other digital assets without exchanging them for legal tender or bank deposits. Mining or staking services must be offered for another person or business to fall within the described service terms. The law took effect upon the governor’s approval on May 19, 2026.