North Carolina Moves to Establish State Bitcoin Reserve with SB327
North Carolina is taking a bold step toward integrating Bitcoin into its financial strategy, joining a growing number of states exploring digital asset reserves. A new legislative proposal, Senate Bill 327 (SB327), introduced on Tuesday, seeks to allocate up to 10% of public funds to Bitcoin, positioning the state as a leader in cryptocurrency adoption at the government level.
Legislative Backing and Strategic Vision
The bill, spearheaded by Republican Senators Todd Johnson, Brad Overcash, and Timothy Moffitt, outlines a framework for Bitcoin investment as part of a broader financial innovation strategy. With an emphasis on economic resilience, SB327 mandates that Bitcoin holdings be stored securely in multi-signature cold storage, undergo monthly audits, and be subject to stringent oversight.
To ensure responsible management, the bill restricts Bitcoin liquidations to extreme financial crises, requiring approval from two-thirds of the General Assembly before any sale. Additionally, it proposes the formation of a Bitcoin Economic Advisory Board, which would provide guidance on reserve management and explore potential revenue-generating opportunities within the Bitcoin ecosystem.
Exploring Bitcoin Mining and Yield-Generating Strategies
A notable aspect of SB327 is its inclusion of Bitcoin mining as a cost-effective means of increasing the state’s holdings. By engaging in mining operations, North Carolina could accumulate Bitcoin at a lower acquisition cost while reinforcing its commitment to blockchain technology.
The bill also grants the State Treasurer the authority to participate in Bitcoin-backed investment strategies, such as staking and lending, to generate additional yield from the reserve. These provisions align with a broader trend of states viewing Bitcoin not just as a store of value but as an active financial asset.
Parallel Efforts in North Carolina’s Crypto Policy
In addition to SB327, North Carolina lawmakers have introduced House Bill 92 (HB92), which aims to expand Bitcoin investment options for the state. If passed, HB92 would permit the State Treasurer to allocate up to 10% of public and retirement funds into Bitcoin exchange-traded products (ETPs). However, these ETPs must track assets with a minimum average market capitalization of $750 billion over the past year—a criterion that currently only Bitcoin meets.
Bitcoin Reserves Gain Momentum Across the U.S.
North Carolina’s initiative is part of a nationwide movement among states to incorporate Bitcoin into their financial planning. Arizona has emerged as a frontrunner, with three Bitcoin reserve bills currently under discussion. Recently, Arizona’s Senate Bill 1062, which aims to recognize Bitcoin as legal tender, passed the House Commerce Committee in a 6-4 vote.
Meanwhile, Texas is considering Senate Bill 21 (SB21), which would establish a state-managed investment fund dedicated to Bitcoin and other high-market-cap cryptocurrencies. Utah initially led the charge with House Bill 230 (HB230), but significant amendments removed provisions for a state-managed Bitcoin reserve, instead focusing on custody and mining protections.
A National Push for Bitcoin Reserves
The momentum behind state-level Bitcoin reserves coincides with recent developments at the federal level. Earlier this month, President Donald Trump unveiled a plan for a national Bitcoin reserve, with the ambition of making the U.S. the "crypto capital of the world." While some states have embraced similar proposals, others have rejected them outright, highlighting the ongoing debate over Bitcoin’s role in public finance.
As the competition to establish Bitcoin reserves heats up, North Carolina’s SB327 positions the state as a forward-thinking player in the evolving landscape of state-level cryptocurrency adoption. Whether the bill gains legislative approval remains to be seen, but its introduction marks a significant shift in how state governments view digital assets as part of their financial strategies.