South Carolina has taken an important step to integrate digital assets into financial strategy at state level.
On March 27, the state legislators introduced a new bill to set up a Bitcoin reserve to protect public funds against inflation.
At the same time, the State dropped its lawsuit against Coinbase due to alleged violations of securities that have been linked to its deployment services.
Bitcoin Reserve Bill
Representative Jordan Pace entered A new account with which South Carolina can invest some public funds in Bitcoin.
The proposed legislation, the Strategic Digital Assets Reserve Act ((H4256), Bitcoin positions as protection against inflation and economic instability.
The bill would authorize the treasurer of the State to allocate to Bitcoin up to 10% of the funds brought by the government if it is accepted. However, there is a hard limit – South Carolina cannot contain more than 1 million BTC.
In the meantime, the funds for these investments would come from existing sources such as the General Fund and the Budget Stabilization Reserve Fund.
The bill goes one step further by setting transparency standards. It requires the public disclosure of wallet addresses that are linked to the Bitcoin reserve. This would enable citizens to check transactions and verify holdings on the blockchain.
In a unique turn, the bill also enables residents to deliver voluntary Bitcoin contributions. The proposal outlines strict storage requirements to protect the assets, including the use of cold portfolios or certified managers.
Coinbase strike -right case was rejected
In addition to the legislative push, South Carolina has decided to withdraw his legal challenge against Coinbase.
The case, submitted in June 2023, accused the crypto exchange of the violation of securities laws through its deployment services.
However, the dismissal followed one agreement Between the securities division of the state and Coinbase.
The Chief Legal Officer of Coinbase, Paul Grewal, welcomed the news and noted that residents of South Carolina had missed almost $ 2 million during the legal dispute.
Nevertheless, Grewal praised the decision of the state and expressed the optimism that other states – such as California, New Jersey and Illinois – would follow the example.
In the meantime, this decision reflects a similar step of Vermont, which previously dropped its lawsuit in March.
The recording comes shortly after the US Securities and Exchange Commission (SEC) terminated its case against Coinbase in February.
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