South Carolina May Allow Bitcoin into Its State Financial Strategy by Coin Edition

South Carolina has taken a significant step toward potentially allowing Bitcoin into its state financial strategy.

South Carolina may soon be taking a significant step toward including Bitcoin in its state financial strategy. State Representative Jordan Pace has introduced the “Strategic Digital Assets Reserve Act” (House Bill 4256), which would allow the state treasurer to allocate up to 10% of certain state funds into cryptocurrencies, with a specific focus on Bitcoin.

If enacted, South Carolina would join a growing number of US states exploring Bitcoin as a potential strategic reserve asset.

What Does South Carolina’s Bitcoin Reserve Bill Propose?

HB 4256 specifically enables the current South Carolina treasurer, Curtis Loftis, to establish and manage a state Bitcoin reserve. The text references a potential holding ceiling of up to 1 million BTC, which is the same language that was discussed for potential federal plans under the Trump administration.

If adopted, these state Bitcoin holdings could potentially be allocated across various state accounts, including the General Fund and the Budget Stabilization Reserve Fund (often called a “rainy day” fund).

According to tracking data from Bitcoin Law, approximately 42 similar Bitcoin reserve-related bills have been introduced across 24 states to date, with around 36 reportedly still active legislative items.

How Does This Fit Broader US Crypto Adoption Trends?

This state-level proposal comes as related activity is unfolding on the national stage. Earlier this month, President Trump signed an executive order aimed at creating a federal Strategic Bitcoin Reserve, to be funded from assets seized via forfeiture cases rather than new purchases.

Meanwhile, Arizona has advanced two bills (SB 1373 and SB 1025) concerning state holding of digital assets obtained through various means.

Kentucky, on the other hand, recently took a pro-crypto stance with Governor Andy Beshear signing House Bill 701 to ensure protections for self-custody and node operation, and to prevent discriminatory zoning against crypto miners.

What Does Current Bitcoin Market Analysis Suggest?

As policymakers discuss Bitcoin's role in state and federal strategies, market analysts are offering differing short-term views on the cryptocurrency's price movements.

Analyst "Mister Crypto" suggests Bitcoin is nearing a breakout from a triangular consolidation pattern, which could propel it to target significantly higher price levels in the months ahead. His analysis indicates that a successful breach of upcoming resistance could position Bitcoin to rally towards the $150,000-$200,000 range.

However, another analyst, "CryptoGoos," predicts Bitcoin’s dominance—its share of the total crypto market capitalization—is likely to fall soon. CryptoGoos suggests BTC dominance is approaching a long-term resistance level on its chart and could face a sharp decline. If this analysis proves correct, such a pattern has historically signaled the potential start of an "altcoin season," where altcoins may generate larger percentage gains relative to Bitcoin.