North Carolina Eyes 10% of Public Funds for Bitcoin Reserve Under New Bill

CN
22 hours ago

North Carolina lawmakers are reviewing Senate Bill 327, the North Carolina Bitcoin Reserve and Investment Act, to incorporate bitcoin into the state’s financial strategy. Introduced on March 19 by Senators Todd Johnson and Brad Overcash, with co-sponsorship from Senator Timothy Moffitt, the bill aims to establish a strategic Bitcoin reserve. According to the text of the bill:

The purpose of this act is to establish a strategic bitcoin reserve for the state of North Carolina, promote bitcoin investment as a financial innovation strategy, and position North Carolina as a leader in state-level cryptocurrency adoption.

If passed, the legislation would authorize the state treasurer to allocate up to 10% of public funds into bitcoin as a long-term asset. The bill outlines key management and security measures to protect the bitcoin reserve. According to the proposal:

The Office of the State Treasurer is authorized to allocate up to ten percent (10%) of public funds into bitcoin ( BTC) as part of the state’s long-term financial strategy.

“Bitcoin acquired with funds allocated pursuant to this section shall be placed into a reserve (bitcoin reserve). The Treasurer is authorized to engage in bitcoin-backed investment strategies, including staking, lending, and other regulated yield-generating activities,” the bill details. To ensure security, the reserve would be stored in cold wallets with multi-signature authentication, and a new department within the Treasurer’s Office would be responsible for oversight. The bill also mandates monthly audits, insurance policies, and the formation of a Bitcoin Economic Advisory Board.

The legislation also sets strict acquisition and usage guidelines for the reserve. It specifies:

The acquisition of bitcoin shall be conducted through strategic bulk purchases to take advantage of favorable market conditions. Bitcoin purchases shall be executed through regulated U.S.-based cryptocurrency exchanges to ensure compliance with federal and State regulations.

“The Treasurer shall explore bitcoin mining operations as a means of increasing the state’s holdings at minimal cost,” the bill further adds. Additionally, the bill limits the use of the bitcoin reserve, requiring legislative approval for liquidation except in cases of financial emergencies, investment strategies, or funding state-approved infrastructure projects. Transparency measures would include quarterly reports to the General Assembly and public disclosures. If enacted, the law would take effect immediately.

At the federal level, President Donald Trump has signed an executive order to create a Strategic Bitcoin Reserve, utilizing bitcoin seized by the government. Concurrently, legislators have introduced bills in both the Senate and the House to formalize this reserve, proposing the acquisition of up to one million BTC over five years. At the state level, a growing number of states are exploring similar measures. Some states aim to allocate a portion of their public funds directly into bitcoin, while others consider investments in bitcoin-backed financial products or the establishment of strategic reserves.

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