RALEIGH, N.C. — A bill that would allow North Carolina state-chartered banks and credit unions to offer digital asset services while establishing a regulatory framework for payment stablecoins has cleared its second reading in the state House by a 115-0 vote.
The legislation, House Bill 1029, would permit banks and credit unions to custody digital assets for customers, facilitate digital asset transactions and provide staking services, according to reporting by Carolina Journal.
Supporters said the measure would create a framework for financial institutions to participate in the growing digital asset market while establishing consumer protections and regulatory oversight, the Journal reported.
“House passage of H1029 is a major step forward for North Carolina’s digital asset economy,” the North Carolina Blockchain + AI Initiative said in a statement to Carolina Journal. “This bill gives state-chartered banks and credit unions a clear path to provide custody, staking, and transaction services while requiring strong reserves, audits, disclosures, cybersecurity standards, and consumer protections.”
The organization credited bill sponsors and members of the House Select Committee for advancing what it described as a framework that supports innovation while protecting consumers.
Consumer Protections Included
According to the Carolina Journal, the bill would require banks and credit unions providing digital asset custody services to enter into written agreements with customers and disclose that digital assets are not deposits and are not insured by either the Federal Deposit Insurance Corp. or the National Credit Union Administration.
Financial institutions would also be required to maintain 100% reserves of each type of digital asset owed to customers and undergo annual independent audits.
The legislation would additionally permit customers to stake digital assets through participating institutions. Any staking rewards would belong to customers, less any disclosed fees charged by the institution.
Banks and credit unions would be required to manage risks associated with staking activities, including cybersecurity threats, operational failures, lock-up periods and “slashing,” a blockchain-related penalty that can reduce staked assets.
Role for State Treasurer
The bill would also authorize the state treasurer to hold, liquidate or stake unclaimed digital assets.
State Treasurer Brad Briner told Carolina Journal the measure reflects the need for North Carolina’s banking policies to evolve alongside the digital asset marketplace.
“As a state, we need to modernize our way of thinking when it comes to banking, while at the same time both complying with federal mandates in the GENIUS Act and embracing the needs of North Carolina innovators,” Briner told the publication. “I applaud the efforts of Reps. Chesser and Willis through H1029 as the digital asset industry continues to evolve rapidly.”
Stablecoin Licensing Framework
A second major component of the legislation would establish a state licensing system for payment stablecoin issuers.
Under the proposal, no person or entity could issue, circulate, offer or redeem a payment stablecoin in North Carolina unless it qualifies as a permitted payment stablecoin issuer.
The framework is tied to the federal GENIUS Act and would allow certain federally qualified issuers and qualifying out-of-state issuers to operate in North Carolina under specified notice and reciprocity requirements, according to the Carolina Journal.
The Proposed Requirements
The bill would require stablecoin issuers to:
- Maintain sufficient reserves backing issued stablecoins
- Redeem stablecoins at par value
- Disclose applicable fees
- Publish monthly reports
- Undergo annual reserve examinations
- Maintain anti-money laundering and customer identification programs
- Comply with federal sanctions requirements
- Notify the North Carolina commissioner of banks of certain federal enforcement actions.
According to the Carolina Journal, the stablecoin provisions would take effect on the earlier of January 2027 or 120 days after federal regulators issue final regulations implementing the GENIUS Act.
