South Carolina Emerges as a National Leader in Digital Asset Innovation and Financial Freedom
- 16 hours ago
- 2 min read
Governor McMaster Signs S163 – Freedom Financial Act into Law on May 19
Charleston, SC – May 19, 2026, Governor Henry McMaster signed S163, the Freedom Financial Act, into law — the same day President Trump signed a major Executive Order directing federal regulators to reduce barriers for fintech, digital assets, and blockchain innovation.
The bill passed with overwhelming bipartisan support — 38-1 in the Senate and 110-1 in the House — and establishes clear, pro-innovation guardrails for digital assets while protecting consumers and critical infrastructure.
Self-Custody and Usage Rights: Protects individuals and businesses using self-hosted wallets and digital assets for lawful transactions.
Tax Neutrality: Prohibits discriminatory taxes on digital assets; transactions are taxed the same as U.S. legal tender.
Digital Asset Mining and Operations: Allows mining and node operations in industrially zoned areas with practical protections to prevent undue stress on the electrical grid. Mining, node operations, and staking-as-a-service are exempt from certain burdensome licensing requirements.
Anti-CBDC Safeguard: Prohibits state and local governments from accepting, requiring, or participating in tests of Central Bank Digital Currencies.
Fraud Protection: Empowers the Attorney General to prosecute fraudulent “mining as a service” or “staking as a service” schemes.
Quote from Rep. Mark Smith (R-District 99), who presented the bill on the House floor:
“House Members, 15% of our fellow South Carolinians already own digital assets. It’s time we provide a modern regulatory framework for blockchain and digital assets in our state. S163 delivers clear definitions, protects against Central Bank Digital Currencies, safeguards the right to use digital assets in lawful transactions, and includes practical guardrails. Backed by the banking and municipal associations with no opposition, this bill ensures South Carolina leads in financial innovation and freedom.”
“This legislation removes regulatory uncertainty and sends a clear message: South Carolina is open for business in emerging technologies,” said Dennis Fassuliotis, President and Founder of the South Carolina Emerging Tech Association (SCETA).
“The perfect timing — signed on the same day as President Trump’s fintech Executive Order — creates powerful state-federal synergy. S163 combines smart guardrails with strong protections for self-custody, tax fairness, and private innovation, positioning our state as a competitive hub for blockchain, fintech, digital finance, energy tech, and compute industries.”
Why This Matters for South Carolina
S163 is expected to attract investment, talent, and companies in digital assets, strengthen privacy and economic sovereignty, and support job creation in high-growth emerging tech sectors — all while maintaining strong consumer protections and grid reliability.
The South Carolina Emerging Tech Association played an active role in advocating for the bill through direct engagement with lawmakers and stakeholders.
About the South Carolina Emerging Tech Association (SCETA)
SCETA is a 501(c)(6) nonprofit organization dedicated to advancing pro-innovation policies and building a vibrant emerging technology ecosystem in South Carolina.
Focused on Payments, Identity, Energy, and Compute (PIEC), SCETA drives smart policy, industry collaboration, and economic development across the state.
Media Contact:
Dennis Fassuliotis
President & Founder, SCETA
Email:l info@sceta.io
Phone: 843.270.1016
Website: www.sceta.io
X: @libertyntech
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