Lawmakers in North Carolina introduced legislation Wednesday to create a state-regulated Bitcoin repository.
Senate Bill 327, entitled North Carolina Bitcoin Reserve and Investment Actwill allow the Federal Treasury to allocate up to 10% of public funds to BTC as part of the government’s long-term financial strategy.
The bill, sponsored by Senators Johnson and Overcash, passed its first reading in the Senate and was referred to the Committee on Rules and Jobs. Its stated goals include establishing a Strategic Bitcoin Reserve, promoting BTC as an innovative form of finance, and positioning North Carolina as a leader in crypto adoption at the state level.
Under the proposal, the Treasury would manage the reserve using cold wallets with multi-signature verification.
A new department within the Treasurer’s office will manage assets, ensuring state control. The bill also calls for a Bitcoin Economic Advisory Board made up of industry experts to provide guidance and monthly audits to ensure reserve balances, security, and performance.
Bitcoin purchases will be made through regulated US-based exchanges, with bulk purchases timed to take advantage of market conditions. The bill also directs the Treasury to examine BTC mining operations as a potential means of increasing government holdings.
Use of the reserve will be limited to major financial issues, approved investment strategies, funding of critical infrastructure and economic development projects, and support for Bitcoin-related research, education, and business interests.
Any liquidation of the BTC will require the approval of at least two-thirds of both chambers of the General Assembly. The bill allows the reserve to issue bonds as an alternative financing tool for public projects.
The Treasurer will send quarterly reports to the General Assembly detailing the status, value, and performance of this property.
The reports will also be publicly available on the Treasury website, according to the bill. The bill includes provisions to comply with federal and state laws regarding cryptocurrency withholding and taxation and advocates advocating for federal laws in favor of Bitcoin.
US states want Bitcoin
Several US states are exploring or using BTC reserves as part of their state treasury strategies.
Texas, New Hampshire, and Arizona have enacted laws allowing portions of state funds to be allocated to Bitcoin, while Maryland, Iowa, Kentucky, North Carolina, Michigan, South Dakota, Illinois, Tennessee, and Missouri have introduced legislation proposing similar reserves.
Other states, including Oklahoma, Utah, and Pennsylvania, considered pending bills in committee, while proposals in Wyoming, Montana, and Florida stalled or were rejected. These efforts reflect the growing trend of using BTC as a hedge to store potential value and diversify a country’s financial assets.
