North Carolina Introduces Bitcoin Reserve Bill

• North Carolina bill proposes allocating up to 10% of state funds into Bitcoin.
• The plan includes cold storage, audits, insurance, and advisory oversight for security.
• The framework allows yield generation, lending, and potential Bitcoin mining activities.

One year ago, North Carolina first introduced the Bitcoin Reserve and Investment Act. On Wednesday, the same bill passed its first Senate reading. For a piece of legislation that began as a proposal most people dismissed, that anniversary carries a certain weight.

Senate Bill 327, sponsored by Senators Johnson and Overcash, would authorise the state treasurer to allocate up to 10% of North Carolina’s public funds into Bitcoin as part of a formal long-term financial strategy. It has been referred to the Rules and Operations Committee, where its next phase of scrutiny begins.

Not Just Holding Bitcoin

What separates this bill from simpler allocation proposals being floated in other states is the operational depth behind it. North Carolina is not proposing to buy Bitcoin and leave it sitting. The framework includes:

• Cold storage with multi-signature authentication, preventing unauthorised access
• A Bitcoin Economic Advisory Board of industry experts providing continuous guidance
• Monthly audits covering reserve balance, security, and financial performance
• State-backed insurance protects the reserve against cyber threats and market downturns
• Yield-generating activity, including staking and lending, is explicitly permitted
• Bitcoin mining exploration as a mechanism for growing state holdings at minimal cost
• Two-thirds approval from both legislative chambers is required before any liquidation

That last point matters enormously. Building a supermajority requirement into the liquidation process creates a structural defence against panic selling during market downturns, something few other state proposals have thought to include.

A Movement That Has Been Building for a Year

North Carolina did not arrive at this point overnight. The bill has been in development since March 2025, progressing slowly through the institutional warnings that govern state-level financial decisions. 

Texas, New Hampshire, and Arizona have already enacted Bitcoin reserve legislation. Maryland, Iowa, Kentucky, Michigan, South Dakota, Illinois, Tennessee, and Missouri have all introduced similar bills. Oklahoma, Utah, and Pennsylvania have proposals sitting in committee. 

The bill now sits with the Rules and Operations Committee. Passage is not guaranteed, and the road through committee review, floor debate, and potential amendment will take time. The question now is whether North Carolina finishes what it started a year ago.

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