South Carolina Governor Henry McMaster signed S. 163 into law on May 19, 2026. The bill cleared the Senate 38-1 and the House 110-1 before ratification on May 14, 2026.
S. 163 amends South Carolina law to create protections for digital asset use and restrictions on state central bank digital currency. The law prohibits any state agency, board, commission, department, or political subdivision from accepting or requiring payment in a central bank digital currency. It bars any person or business from being prohibited from accepting digital assets as payment for legal goods and services. It exempts digital asset transactions from any additional state or local tax, fee, or assessment imposed solely because the medium of exchange is a digital asset. Persons engaged in digital asset mining in residentially zoned areas are protected from prohibition provided they comply with applicable local ordinances. Entities engaged in mining, operating a blockchain protocol, developing software on a blockchain, or exchanging one digital asset for another without involving legal tender or bank deposits are exempt from South Carolina money transmitter licensing.
The law directly affects cryptocurrency exchanges, mining operators, and businesses accepting digital asset payments in South Carolina. Businesses that previously obtained South Carolina money transmitter licenses solely for crypto-to-crypto exchange activity should assess whether continued licensure remains required. Consumers and merchants using self-custody wallets or hardware wallets retain explicit state protection for self-hosted custody.
The law does not override federal requirements under the Bank Secrecy Act or FinCEN money services business registration, which continue to apply regardless of state law. The CBDC prohibition binds state and local government bodies only and does not impose obligations on private entities. The money transmitter licensing exemption applies to the enumerated activities; entities conducting activities outside those categories remain subject to standard licensing analysis.
Licentium advises on digital asset regulatory compliance across U.S. and international jurisdictions. We maintain a partner network covering state licensing matters. Contact us to assess how S. 163 affects your South Carolina operations. Work we undertake includes state money transmitter licensing review, digital asset payment compliance, CBDC policy analysis, and regulatory positioning for crypto businesses entering new markets.
Source: S. 163, South Carolina General Assembly, 126th Session (2025-2026), signed May 19, 2026