Yesterday, the re -introduction of MP Jordan Pace Bill e. 4256,, “South Carolina Strategic Assets Law”, at the house of South Carolina representatives.
The outstanding points of the draft law include the fact that it enables the treasurer to invest up to 10 % of the funds under the management of the state in digital assets, including Bitcoin, and the strategic digital asset reserves in the state can include up to one million Bitcoin.
The draft law also states that the reason for the establishment of such a reserve is that “inflation may erode the purchasing power of the assets held in state funds” and that “bitcoin, decentralized digital assets, and other digital assets that provide unique characteristics that can serve as a hedge against inflation and economic volatility.”
The draft law does not stipulate whether state officials should keep the special keys to Bitcoin and other digital assets that accumulate for the reserve, although it enables the treasurer to develop policies and protocols to protect the assets held in the reserve, including the use of cold storage or contracting with a third party to maintain the seizure of morals. Treasury can also take advantage of a third party to help create, maintain and manage reserve security.
According to the draft law, the state treasurer will be responsible for preparing a report for every two years that includes the total amount of digital assets preserved in the reserves, the value of the US dollar for these assets, transactions and expenses related to the reserve since the previous report. Also, the state treasurer will be asked to publish the proof of reserves, which includes the general titles of the digital assets preserved in the reserve on the state’s official website, which allows citizens to review and verify the reserve holdings independently.
Finally, the draft law states that strategic digital assets reserves are subject to audits that include an examination of the quality of nursery solutions; Evaluation of compliance with local, state and federal laws; And evaluation of internal controls to alleviate electronic attacks and mismanagement.
According to the draft law, independent audits must be carried out annually and submitted to the relevant control committee. Any recommendations resulting from independent audits must be addressed within 90 days of issuing the report, and follow -up reports must be submitted in detail the corrective measures taken to the Supervisory Committee.
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