Proposed South Carolina Bill Lets State Treasurer Invest 10% Of State Funds In Bitcoin

Yesterday, Rep. Jordan Pace reintroduced Bill H. 4256, The “Strategic Digital Assets Reserve Act Of South Carolina”, into South Carolina’s House of Representatives.

Highlights from the measure see the information that it enables the State Treasurer to put up to 10% of the funds nether the state’s absorption into integer assets, including bitcoin, and that the state’s Strategic Digital Assets Reserve tin see up to 1 cardinal bitcoin.

The measure besides states that the crushed for establishing specified a reserve is due to the fact that “inflation has eroded the purchasing powerfulness of assets held successful authorities funds” and that “bitcoin, a decentralized integer asset, and different integer assets connection unsocial properties that tin enactment arsenic a hedge against ostentation and economical volatility.”

The measure does not stipulate whether oregon not authorities officials should clasp the backstage keys to the bitcoin and different integer assets that it accumulates for the reserve, though it enables the State Treasurer to make policies and protocols to support the assets held successful the reserve, including the usage of cold storage oregon the contracting of a 3rd enactment to support custody of the assets. The State Treasurer tin besides utilize a 3rd enactment to assistance successful the creation, maintenance, and medication of the reserve’s security.

As per the bill, the State Treasurer would beryllium liable for preparing a biennial study that includes the full magnitude of integer assets held successful the reserve, the U.S. dollar worth of those assets, and transactions and expenditures related to the reserve since the erstwhile report. Also, the State Treasurer would beryllium required to people proof of reserves, which includes the nationalist addresses of the integer assets held successful the reserve connected an authoritative authorities website, enabling citizens to independently audit and verify the reserve’s holdings.

Finally, the measure stipulates that the Strategic Digital Asset Reserve acquisition audits that see an introspection of the prime of the information of custody solutions; an appraisal of compliance with local, authorities and national laws; and an valuation of interior controls to mitigate against cyberattacks and mismanagement.

According to the bill, the autarkic audits should beryllium conducted annually and submitted to the applicable oversight committee. Any recommendations resulting from the autarkic audits indispensable beryllium addressed wrong 90 days of the issuance of the report, and a follow-up reporting detailing the corrective actions taken indispensable besides beryllium provided to the oversight committee.