A South Carolina state legislator has proposed the "Strategic Digital Asset Reserve Act," which would allow 10% of state funds to be invested in Bitcoin

According to Financefeeds, South Carolina Representative Jordan Pace has proposed the "Strategic Digital Asset Reserve Act" (Bill H4256). If passed, it would allow the state to establish a reserve of up to 1 million Bitcoins. The bill was introduced in the state legislature earlier this month, authorizing the South Carolina Treasurer to invest up to 10% of unused state funds in digital assets, including Bitcoin. The investment funds will come from various sources such as general funds and budget stabilization reserve funds. However, the total amount of digital assets held by the state cannot exceed 3% of South Carolina's overall investment portfolio.

The bill requires that all assets must be stored in highly secure custody solutions, including cold storage methods that provide protection against cyber threats. It also mandates that all public addresses for reserves must be published on official state websites so residents can verify transactions and assets. In addition, it introduces a public donation mechanism allowing residents of South Carolina to donate digital assets to reserves. This provision aims at promoting community participation and encouraging wider adoption of Bitcoin within the state.

The bill is currently under review and needs approval from South Carolina's legislative body before it can take effect. Once signed into law, it will become effective until September 1st, 2035 unless renewed by legislators.