The "Strategic Digital Assets Reserve Act of South Carolina" aims to allow the State Treasurer to invest in digital assets, including Bitcoin, as a means to hedge against inflation and diversify the state's financial portfolio. The bill establishes a new Article 5 in Chapter 5, Title 11 of the South Carolina Code, which outlines definitions related to digital assets, including terms like "cold storage," "secure custody solution," and "qualified custodian." It permits the State Treasurer to invest up to ten percent of unencumbered funds from specified state funds in digital assets, while ensuring that these assets are securely stored and managed according to established best practices.
Additionally, the bill mandates the development of policies for the secure storage and protection of digital assets, including regular independent audits to verify compliance with security standards and legal requirements. The State Treasurer is also required to prepare biennial reports detailing the digital assets held, their value, and any transactions related to the reserve. Furthermore, the act allows for the acceptance of digital asset donations from residents and emphasizes transparency by requiring the publication of public addresses for all digital assets held in the reserve. The provisions of this act will expire on September 1, 2035, unless renewed.