North Carolina Senate Bill Proposes Bitcoin as State Reserve Asset
North Carolina lawmakers have introduced a new bill that would allow the state to invest in Bitcoin as a strategic reserve asset. Senate Bill 327 (SB327), introduced on Tuesday by Republican Senators Todd Johnson, Brad Overcash, and Timothy Moffitt, proposes that the State Treasurer allocate up to 10% of public funds to Bitcoin.
The bill positions Bitcoin investment as part of a "financial innovation strategy" aimed at strengthening North Carolina's economic standing. If passed, the legislation would make North Carolina one of more than a dozen states pursuing the creation of a state Bitcoin reserve.
Under the proposed legislation, Bitcoin holdings would be stored in multi-signature cold storage and undergo monthly audits to maintain transparency and security. The bill also includes strict controls on Bitcoin liquidation, limiting sales to cases of "severe financial crisis" and requiring approval from two-thirds of the General Assembly.
SB327 calls for the creation of a Bitcoin Economic Advisory Board to provide ongoing guidance on managing the reserve. The bill also explores the possibility of establishing Bitcoin mining operations as a way to increase the state's holdings at a lower cost.
The State Treasurer would be authorized to engage in Bitcoin-backed investment strategies, including:
- Staking
- Lending
- Other regulated yield-generating activities
This bill is part of a broader push to incorporate cryptocurrency into North Carolina state policy. Lawmakers recently proposed House Bill 92 (HB92), which would allow the State Treasurer to invest in Bitcoin exchange-traded products (ETPs).
HB92 similarly proposes allocating up to 10% of public funds and retirement systems to ETPs tracking digital assets with a minimum average market capitalization of $750 billion over the past twelve months. Bitcoin is currently the only asset that meets this criterion. The state's initiative comes as President Donald Trump recently announced plans for a national Bitcoin reserve with the goal of making the U.S. the "crypto capital of the world."
The move comes amid growing regulatory efforts across states. North Dakota recently passed a bill regulating cryptocurrency ATMs with a $2,000 daily transaction cap per user and requiring operators to be licensed money transmitters, part of efforts to combat the nearly tenfold increase in Bitcoin ATM fraud since 2020.
