North Carolina lawmakers introduced legislation on Wednesday to create a state-controlled Bitcoin reserve.
Senate Bill 327, titled the North Carolina Bitcoin Reserve and Investment Act, would allow the Office of the State Treasurer to allocate up to 10% of public funds into BTC as part of the state’s long-term financial strategy.
The bill, sponsored by Senators Johnson and Overcash, passed its first Senate reading and was referred to the Rules and Operations Committee. Its stated goals include establishing a Strategic Bitcoin Reserve, promoting BTC as a financial innovation, and positioning North Carolina as a leader in state-level crypto adoption.
Under the proposal, the Treasurer would manage the reserve using cold storage wallets with multi-signature authentication.
A new department within the Treasurer’s office would take custody of the assets, ensuring state control. The bill also calls for a Bitcoin Economic Advisory Board composed of industry experts to provide guidance and monthly audits to verify reserve balances, security, and performance.
Bitcoin acquisitions would be conducted through regulated U.S.-based exchanges, with bulk purchases timed to take advantage of market conditions. The bill also directs the Treasurer to explore BTC mining operations as a potential method to increase state holdings.
Use of the reserve would be restricted to severe financial crises, approved investment strategies, funding for critical infrastructure and economic development projects, and support for Bitcoin-related research, education, and business incentives.
Any liquidation of BTC would require approval from at least two-thirds of both chambers of the General Assembly. The bill allows the reserve to back bonds as an alternative financing tool for public projects.
The Treasurer would submit quarterly reports to the General Assembly detailing the reserve’s status, value, and performance.
Reports would also be publicly available on the Treasurer’s website, according to the bill’s text. The bill includes provisions to comply with federal and state laws regarding cryptocurrency holdings and taxation and encourages advocacy for federal regulations favorable to Bitcoin.
U.S. states want Bitcoin
Several U.S. states are exploring or have implemented BTC reserves as part of 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, have considered bills that remain in committee, while proposals in Wyoming, Montana, and Florida have stalled or been rejected. These efforts reflect a growing trend to use BTC as a potential store-of-value hedge and diversify state financial assets.