The legislator at South Carolina proposes a bunger for coding law, where the government Qatar Coinbase Case
South Carolina has officially entered the Bitcoin Reserve race with a new draft law that proposes the establishment of a state reserve.
On the same day, the state dropped its case against Coinbase.
It was submitted by actor Jordan Pace on March 27, the draft law, called the Strategic Digital Asset Reserve Law at South Carolina (Home Law Bill 4256) The Treasury Secretary will give the state the authority to invest in digital assets such as Bitcoin, which can serve as “hedging against inflation and economic volatility.”
What is HB 4256?
The basics of the draft law are similar to the reserve bills for other encryption that were submitted through other judicial states.
If approved, the Treasury Secretary will be allowed to allocate up to 10 % of the non -committed money from the state -run sources such as the Public Installation Fund and the Budget in Digital Assets.
However, the legislation determines the maximum solid limit of one million BTC reserves and is limited to any single digital assets of no more than 3 % of the total investment portfolio in the state.
These assets will be kept either directly by the state, through a qualified guard, or in the form of products circulating in the exchange.
All digital assets should be safely stored using cold nursery solutions or approved nursery solutions, and the state is prohibited from lending to any of the assets it keeps.
To maintain transparency, the treasurer will be asked to publish the general Blockchain addresses for all reserve holdings, allowing citizens to independently verify transactions and balances.
Moreover, the treasurer is conducting independent scrutiny at least once a year and providing results to the oversight committees, along with a general summary issued via the Internet.
The draft law also provides legislation that will allow the state to accept the donations of digital assets from South Carolina.
The treasurer will be assigned to create a simplified process for such contributions through accredited sellers.
Finally, the draft law prohibits the state and its partners from engaging in any activity that would undermine or disrupt the digital asset networks in which they participate.
“South Carolina, its agencies, and any contractors or third parties involved in managing strategic digital asset reserves are strictly prohibited from engaging in, supporting or coordinating any efforts to disrupt, attack or undermine the digital asset network,” which is an excerpt from the invoice notes.
What distinguishes HB 4256 from the pre -coding proposals of the other country is its clear focus on Bitcoin, which has been called several times throughout the draft law as a basic asset in the proposed reserve.
South Carolina soften the encryption position
The Bitcoin reserve bill comes in South Carolina where it seems to reduce its position on encryption on a larger scale.
On the same day, the draft law, chief legal official at Coinbase, Paul Ghroul, was presented, Declare The state has dropped a lawsuit against exchange services.
South Carolina, along with nine other states, filed a lawsuit against the stock exchange in 2023 due to allegations that her savings service was unregistered safety.
The separation is wiping the road to Coinbase to re -launch residents of South Carolina’s residents.
Meanwhile, the state is also considering a draft law that gives a wider view of how to treat digital assets under South Carolina.
State Law Bill 0163And presented in January, sets a full framework for how individuals, companies and even government agencies interact with encryption techniques and Blockchain.
The legislator at South Carolina proposes a draft reserve for encryption.
