PANews reported on March 28 that according to financefeeds, South Carolina Congressman Jordan Pace proposed the "Strategic Digital Asset Reserve Act" (Bill H4256), which, if passed, 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 and authorizes 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 funds, such as the General Fund and the Budget Stabilization Reserve Fund. However, the total amount of digital assets held by the state shall not exceed 3% of South Carolina's overall investment portfolio.

The bill requires the state treasurer to ensure that all assets are stored in highly secure custody solutions, including cold storage methods that provide protection from cyber threats. The bill also requires that all public addresses of the reserve must be published on the official state website so that residents can verify transactions and assets. In addition, the bill introduces a public donation mechanism that allows South Carolina residents to donate digital assets to the reserve. The provision is intended to promote community participation and encourage broader adoption of Bitcoin in the state.

The bill is currently under review and will need to be approved by the South Carolina Legislature before it can take effect. Once signed into law, the bill will be in effect until September 1, 2035, unless lawmakers renew it.