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Strategic Digital Assets Reserve Act of South Carolina (H. 4256)

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At a glance

Jurisdiction Official records identify H. 4256 as a South Carolina bill, not a North Carolina bill.

Status Introduced Mar. 27, 2025 and referred to House Ways and Means the same day.

Reserve authority Would authorize State Treasurer digital-asset investments subject to caps and custody rules.

Sunset Would take effect on governor approval and expire Sept. 1, 2035.

Bill details

Bill number H. 4256

Session 126th Session (2025-2026)

Chamber House

Legislative stage Committee 1

Action

Last action Introduced and read first time; referred to the House Committee on Ways and Means.

Last action date Mar 27, 2025

Sponsor

Primary sponsor Rep. Jordan S. Pace

Sponsor party Republican

Source

Source provider State legislature

Source ID SC H4256 / 126th Session (2025-2026)

State legislatureOfficial bill page

Overview

South Carolina H. 4256, the Strategic Digital Assets Reserve Act of South Carolina, is a proposed state bill concerning public-sector digital asset holdings. As of June 12, 2026, the official South Carolina General Assembly record shows the bill was introduced in the House on March 27, 2025 and referred the same day to the House Committee on Ways and Means. It has not been enacted, and the bill text lists no operative effective date unless it receives gubernatorial approval.

What H. 4256 would do

H. 4256 would add a new Strategic Digital Assets Reserve article to Title 11, Chapter 5 of the South Carolina Code. The proposal would authorize the State Treasurer to invest certain unexpended, unencumbered, or uncommitted funds in digital assets, including Bitcoin. Covered funds would include the General Fund, the Budget Stabilization Reserve Fund, and other investment funds managed directly by the State Treasurer.

The bill frames digital assets as a potential reserve asset for state financial management, but it remains a pending legislative proposal. Its provisions are written as conditional authority for state officials and do not create a consumer-facing licensing regime, exchange registration framework, or general authorization for private market activity.

Investment limits and covered assets

The bill defines “digital asset” broadly to include virtual currency, cryptocurrency, or another natively electronic asset that confers economic, proprietary, or access rights or powers. Bitcoin is expressly included in the definition. The bill also recognizes exchange-traded products approved by the SEC, CFTC, or South Carolina Department of Banking and Securities and traded on a regulated exchange.

For state funds listed in the bill, the Treasurer would be limited to investing no more than ten percent of total funds under management in digital assets. H. 4256 would also prohibit lending digital assets acquired by the covered funds. A separate holding-limit provision would require monitoring of digital asset concentrations in the reserve and would cap any Bitcoin reserve at one million Bitcoin.

Custody, cybersecurity, and audits

H. 4256 places significant emphasis on custody and operational controls. Digital assets acquired under the bill would have to be held directly by the State Treasurer through a secure custody solution, by a qualified custodian on behalf of the state, or in the form of a regulated exchange-traded product. The bill’s custody definition references private-key controls, disaster recovery, code audits, penetration testing, and remediation of identified vulnerabilities.

The State Treasurer would also have to develop policies and protocols for secure storage, including cold storage and other digital asset management practices. The proposal permits the Treasurer to contract with a qualified, independent, U.S.-based cryptocurrency entity to assist with reserve security, maintenance, operation, or administration.

Reporting, transparency, and donations

The bill would require biennial reporting on the amount of digital assets held, their U.S. dollar value, and reserve transactions or expenditures since the prior report. It would also require publication of the public addresses for digital assets held in the reserve while keeping private keys and other sensitive security information confidential.

South Carolina residents could make digital asset gifts, grants, donations, bequests, or devises to the reserve through a process developed by the State Treasurer and using approved vendors. Independent testing and audit reports would be required at least annually, with public summaries and a ninety-day response process for material findings or recommendations.

Status and editorial treatment

Because H. 4256 remains in committee, CryptoSlate should treat it as a pending bill rather than an enacted state reserve law. The bill text states that, if approved by the Governor, the act would take effect upon approval and expire on September 1, 2035. Until enactment occurs, the profile should use conditional wording such as “would authorize,” “would require,” and “would establish.”

Key provisions

Digital asset reserve authority

Would create a Strategic Digital Assets Reserve and authorize Treasurer investments in digital assets, including Bitcoin, using certain state-managed funds.

Government holdings Source

Investment cap and no lending

Would cap digital-asset investments at 10% of total funds under management for covered funds and prohibit lending acquired digital assets.

Investment limits Source

Custody and approved vehicles

Would require holdings through secure custody, a qualified custodian, or a regulated exchange-traded product issued by a financial institution.

Custody Source

Security policies and audits

Would require secure-storage policies, annual independent testing and audits, public summaries, and follow-up on material findings within 90 days.

Cybersecurity Source

Transparency and donations

Would require biennial reserve reports, publication of public addresses, confidentiality for private keys, and a process for resident digital-asset donations.

Disclosure Source

Effective date and sunset

Would take effect upon approval by the Governor and expire on September 1, 2035 if enacted in the form introduced.

Sunset Source

Timeline

  1. Mar 27, 2025

Introduced in the House

H. 4256 was introduced and read the first time in the South Carolina House.

Introduced Source

  1. Mar 27, 2025

Referred to Ways and Means

The House referred H. 4256 to the Committee on Ways and Means.

In committee Source

Who it affects

Actors

Rep. Jordan S. Pace, South Carolina General Assembly, South Carolina House Ways and Means Committee, South Carolina State Treasurer

Asset classes

Bitcoin, Cryptocurrency, Digital assets, Exchange-traded products

Official sources

South Carolina H. 4256 Bill Text and StatusSouth Carolina General AssemblyBill text and statusMar 27, 2025EnglishPrimary source South Carolina Bill Search: H. 4256South Carolina General AssemblyBill status indexMar 27, 2025EnglishPrimary source Representative Jordan S. Pace BiographySouth Carolina General AssemblyMember profileEnglishPrimary source UNC LRS: NC Digital Assets Investments ActUNC School of GovernmentLegislative referenceFeb 10, 2025EnglishHigh confidence

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Editorial note

Editor note: The request referenced North Carolina, but H. 4256 is a South Carolina bill. North Carolina’s comparable digital-assets investment bill is H.B. 92, not H. 4256. Confirm jurisdiction before publishing.