Yesterday, Rep. Jordan Pace reintroduced Bill H. 4256The “Strategic Digital Assets Reserve Act Of South Carolina”South Carolina House of Representatives.
Bill highlights include that up to 10 percent of state funds can be allocated to digital assets like bitcoin.
In the bill, it is also stated that there are several reasons for creating a Reserve. “inflation has eroded the purchasing power of assets held in state funds” And that “bitcoin, a decentralized digital asset, and other digital assets offer unique properties that can act as a hedge against inflation and economic volatility.”
It is not specified in the bill whether state officials are to hold private keys for bitcoins and other digital assets accumulated by the Reserve. However, it allows the State Treasurer develop protocols and policies to safeguard the assets held within the Reserve, such as the use cold storage Or, a contract can be made with a third-party to keep custody of assets. The State Treasurer may also use a third-party to aid in creating, maintaining, and administrating the reserve’s safety.
The bill requires the State Treasury to produce a biannual report which includes information on the digital assets that are held in reserve and their value (in U.S. dollars), as well transactions and expenditures relating to reserve. The State Treasurer is also required to make public proof of reservesThe reserve has a website that includes all the addresses of digital assets. Citizens can independently verify and audit the reserves holdings.
The bill also stipulates the Strategic Digital Asset Reserve must undergo regular audits, including an examination of security solutions, an assessment of local, state, and federal law compliance, and an evaluation internal controls that mitigate cyberattacks.
The bill stipulates that independent audits must be performed annually and presented to the appropriate oversight committee. The bill stipulates that any recommendations from independent audits should be implemented within 90 days after the release of the report. A follow-up report detailing corrective measures taken is also required to be submitted to the relevant oversight committee.
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Source: bitcoinmagazine.com
