North Carolina introduced a new bill on Tuesday, SB327, giving the State Treasurer the authority to invest 10% of public funds into Bitcoin, following the HB92 proposal in February but expanding on it, and it could make North Carolina one of the first states to hold Bitcoin in public reserves.
Under SB327, all Bitcoin purchased would be stored in multi-signature cold storage, with monthly proof of holdings required. The bill also places strict limits on selling, allowing liquidations only in cases of serious financial crisis.
State treasurer to oversee Bitcoin reserves
The State Treasurer will have complete control over managing Bitcoin investments. Any Bitcoin purchased will be held in cold storage, completely offline to prevent cyber threats. The law requires monthly proof of holdings, ensuring transparency and accountability.
This move is part of a growing trend of states exploring crypto investments. North Carolina is now one of 19 states considering public crypto holdings. Wisconsin and Michigan already allow Bitcoin in state retirement funds, setting a precedent for government-backed crypto reserves.
The proposal comes after the NC Digital Assets Investments Act, which was introduced in February. That bill aimed to use Bitcoin for transportation, education, and state employee retirement funds. If passed, SB327 would take things even further by allocating 10% of public funds to Bitcoin, making it a central part of the state’s financial strategy.
Political push and national Bitcoin strategy
Republican House Speaker Destin Hall has been leading the charge for Bitcoin investments in North Carolina. While his earlier proposal didn’t explicitly mention Bitcoin, it only allowed investments in crypto with a market cap of at least $750 billion. Right now, that only applies to Bitcoin.
Hall has publicly backed Donald Trump’s plan for a national Bitcoin reserve. Trump, now serving his second term as President, has made it clear that he wants the U.S. to stockpile Bitcoin. He has already signed an executive action forming a working group on digital asset markets, signaling that the federal government could follow North Carolina’s lead.
The price of Bitcoin surged to a new all-time high of nearly $110,000 after president Donald Trump’s election victory, though it is sitting at $83,000 by press time.
But not everyone is convinced that states getting into Bitcoin is a good idea, as critics argue that Bitcoin is too volatile, and that public money should not be exposed to crypto crashes. Some worry that if the price of Bitcoin collapses, the state could end up needing bailouts.
The bill is moving forward with backing from Stephen Ross, Mark Brody, and Mike Schietzelt, three Republican representatives who have pushed for state adoption of crypto. Governor Josh Stein, a Democrat, has also voiced support. “I’m all for giving people more authority to do their jobs,” Stein said. “That doesn’t mean that the treasurer must make those investments, but if there are wise investments that can result in a positive, diversified return for the pension fund, then I’m comfortable with the treasurer making that investment.”
North Carolina Treasurer Brad Briner, who manages $194 billion in assets, will oversee the state’s Bitcoin holdings. The state pension plan alone covers $129 billion, with funds supporting firefighters, police officers, teachers, and other government employees. Under the bill, all private keys to the Bitcoin wallets will be “exclusively known and accessible” to the Treasurer’s office.
Some in the crypto industry see this as a major moment for state-backed Bitcoin reserves. Daniel Spuller, co-chair of the North Carolina Blockchain Initiative, said this bill is different because it was introduced by one of the state’s lead legislators. “This is a big deal,” Spuller said. He also donated $1,000 to Briner’s campaign, showing financial support for the bill’s backers.
The Department of State Treasurer has responded cautiously but is open to the proposal. Loretta Boniti, a spokesperson for the department, said, “We appreciate the legislature’s focus on finding new and forward-thinking ways to improve the performance of our pension plan and look forward to reviewing the bill.” She added, “There are many compelling innovations happening in digital assets, and it is important that our state explore opportunities to modernize.”
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