The proposed bill, S. 163, seeks to establish regulations surrounding the use of cryptocurrency in South Carolina by adding Chapter 47 to Title 34 of the South Carolina Code of Laws. It prohibits governing authorities from accepting or requiring payments in central bank digital currency and from participating in any related tests. The bill allows individuals and businesses to use digital currency for transactions without facing disparate tax treatment or zoning restrictions. It also mandates that digital asset mining operations must not place additional stress on the electrical grid and requires these businesses to provide information to the Public Service Commission upon request.

Furthermore, the bill exempts certain activities related to digital asset mining and blockchain operations from requiring a money transmitter license, including operating nodes and developing software on blockchain protocols. It clarifies that businesses offering digital asset mining or staking services are not considered to be offering securities. The Attorney General is granted the authority to prosecute fraudulent claims related to digital asset mining services. The bill aims to create a supportive environment for digital currency while ensuring consumer protection and regulatory oversight.