State Treasurer Could Allocate Up to 10% of Public Funds to Bitcoin
North Carolina has introduced Senate Bill 327 (SB327), a landmark proposal that seeks to allocate up to 10% of the state’s public funds to Bitcoin. The bill, sponsored by Republican Senators Todd Johnson, Brad Overcash, and Timothy Moffitt, positions North Carolina as a potential leader in state-level Bitcoin adoption.
The bill frames Bitcoin as a "financial innovation strategy", aimed at enhancing North Carolina’s economic standing while hedging against inflation and traditional financial instability. If passed, this initiative would make North Carolina one of the first U.S. states to hold Bitcoin as a reserve asset.
Secure Custody and Strict Liquidation Rules
Under SB327, any state-owned Bitcoin must be stored in multi-signature cold wallets, ensuring maximum security against cyber threats. The bill mandates monthly audits for transparency and strict controls on liquidation, allowing Bitcoin sales only in cases of a severe financial crisis. Any such decision would require approval from two-thirds of the General Assembly.
Additionally, the bill proposes the creation of a Bitcoin Economic Advisory Board, which would oversee the reserve’s management and explore strategies such as Bitcoin mining operations to expand state holdings at a lower cost.
Parallel Legislation for Bitcoin Investment
SB327 is not the only crypto-related proposal in North Carolina. House Bill 92 (HB92), introduced earlier this year, aims to allow the state to invest in Bitcoin exchange-traded products (ETPs). The bill limits investments to digital assets with an average market cap exceeding $750 billion over the past 12 months, making Bitcoin the sole eligible asset under current market conditions.
A Growing National Trend
North Carolina’s move aligns with a broader push across the U.S. to integrate Bitcoin into state reserves and financial policies. Arizona, Texas, and Utah have proposed similar initiatives, with Arizona advancing three Bitcoin reserve bills.
This momentum follows President Donald Trump’s recent executive order, which established a national Bitcoin reserve, positioning the U.S. as the “crypto capital of the world.”
While some states, like Utah, have removed Bitcoin reserve provisions from their bills, the growing legislative interest signals a paradigm shift in how governments perceive digital assets as part of their financial infrastructure.
