38 In a historic decision, the North Carolina House of Representatives has approved Senate Bill 327 (SB327), named the “North Carolina Bitcoin Reserve and Investment Act.” The bill grants the State Treasurer the ability to invest up to 10% of public money in Bitcoin (BTC) to create a state-run Bitcoin reserve with the aim of promoting financial resilience and digital asset innovation.Strategic Allocation: The legislation authorizes the State Treasurer to invest a maximum of 10% of state-held funds, such as public and retirement funds, in Bitcoin.Bitcoin Reserve Creation: Purchased Bitcoin will be deposited into a reserve as a long-term financial asset of the state.Investment Approaches: The law enables the Treasurer to enter into Bitcoin-backed investment approaches, including staking and lending, to earn yield.Oversight and Governance: An Economic Advisory Board for Bitcoin will be formed to manage the reserve and investigate Bitcoin mining ventures to increase state holdings.Liquidation Safeguards: Approval from a minimum of two-thirds of the members of the General Assembly is necessary for any liquidation of Bitcoin assets, thus preventing irresponsible financial management.Parallel Legislative Efforts: House Bill 92 (HB92)Along with SB327, the North Carolina legislators have proposed House Bill 92 (HB92), which would broaden Bitcoin investment possibilities for the state.If approved, HB92 would allow the State Treasurer to invest up to 10% of public and retirement money into Bitcoin exchange-traded products (ETPs). The ETPs must track assets that have at least an average market capitalization of $750 billion over the previous year—a standard only currently satisfied by Bitcoin.Implications for North Carolina and BeyondLegislative initiatives in North Carolina make the state a pioneer among states in the adoption of cryptocurrencies. By bringing Bitcoin into the state’s financial system, the state seeks to:Increase Financial Resilience: Diversifying state resources with Bitcoin would potentially offer an inflation hedge as well as an economic downturn protection.Support Innovation: Accepting digital assets could bring blockchain businesses and funds to locate within the area, driving economic expansion.Create a Precedent: North Carolina becomes the 20th American state to introduce a bill for a strategic Bitcoin reserve, perhaps paving the way for others to join them.At the end of business on May 1, 2025, Bitcoin (BTC) trades at $96,205.00 USD, a gain of 1.06% compared to the close of business previously. Intraday high: $96,250.00 USD, intraday low: $93,287.00 USD.Read More News: Financial Fusion | LTC market analysis | Crypto Trading | Blockchain LayersFAQs: North Carolina Bitcoin Reserve Bill1. What is the North Carolina Bitcoin Reserve and Investment Act (SB327)?SB327 is a bill that allows the State Treasurer of North Carolina to invest up to 10% of state-held public funds, including retirement funds, into Bitcoin to establish a state-run Bitcoin reserve.2. How will North Carolina manage its Bitcoin reserve?An Economic Advisory Board for Bitcoin will oversee the reserve and explore Bitcoin-backed investment strategies like staking and lending to generate yield.3. Can North Carolina sell its Bitcoin holdings at any time?No. Liquidation of the state’s Bitcoin assets requires a two-thirds majority vote from the General Assembly, ensuring long-term commitment and responsible management.4. What is House Bill 92 (HB92) and how is it related?HB92 is a parallel bill that would allow the state to invest in Bitcoin exchange-traded products (ETPs), provided the underlying asset has had an average market cap of at least $750 billion—currently met only by Bitcoin.5. Why is this legislation significant for other U.S. states?North Carolina is pioneering state-level Bitcoin adoption. Its move to integrate Bitcoin into public finance may set a strong precedent for other states considering similar strategic crypto investments.
