(Carolina Journal) – State regulatory framework for banks, credit unions and stablecoin issuers seeking to operate in the digital asset or cryptocurrency space has been proposed in the North Carolina General Assembly.
NC Digital Asset and Stablecoin Act, known also as House Bill 1029, would authorize state-chartered financial institutions to provide digital asset custody, staking, and transaction services, while also creating licensing and oversight rules for payment stablecoin issuers.
The bill is sponsored by Reps. Allen Chesser, R-Nash; David Willis, R-Union; Stephen Ross, R-Alamance; and Mike Schietzelt, R-Wake. The bill passed the House last week after clearing second reading in a 115-0 vote.
Under the bill, banks and credit unions would be allowed to custody digital assets for customers, facilitate digital asset transactions, and provide staking services.
Supporters, such as the North Carolina Blockchain + AI Initiative, more commonly known as NCB+AI, praised the bill.
“House passage of H1029 is a major step forward for North Carolina’s digital asset economy,” NCB+AI told Carolina Journal in a statement. “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. Representatives Chesser, Willis, Ross, Schietzelt, and the House Select Committee deserve real credit for advancing a serious framework that protects consumers, supports responsible innovation, and keeps North Carolina at the forefront of digital finance.”
The measure includes consumer-protection provisions. Banks and credit unions offering custody services would have to enter into written agreements with customers and disclose that digital assets are not bank deposits and are not insured by the FDIC or NCUA. Institutions would also have to maintain 100% reserves of each type of digital asset owed to customers and undergo annual independent audits.
The bill would also allow customers to stake their digital assets. Staking rewards would belong to the customer, minus disclosed fees. Institutions would be required to manage risks tied to staking, including cybersecurity, operational failures, lock-up periods, and slashing, which occurs when staked assets are penalized under blockchain rules.
Under the bill, the state treasurer would be allowed to hold, liquidate or stake unclaimed digital assets. First-term Republican state Treasurer Brad Briner said the measure reflects a need to update state banking policy as digital assets become more common.
“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 Carolina Journal.
The second major portion of the bill would create a state licensing system for payment stablecoin issuers.
Under the legislation, no person could issue, circulate, offer or redeem a payment stablecoin in North Carolina unless they qualify as a permitted payment stablecoin issuer.
The bill ties the state framework to the federal GENIUS Act and would allow certain federally qualified or out-of-state qualified issuers to operate in North Carolina under specified notice and reciprocity rules.
The bill would require stablecoin issuers to maintain reserves, redeem stablecoins at par value, disclose fees, publish monthly reports, obtain annual reserve examinations, maintain anti-money laundering and customer identification programs, comply with sanctions rules, and notify the commissioner of banks of certain federal enforcement actions.
The stablecoin framework would take effect no earlier than January or 120 days after federal regulators issue final regulations under the GENIUS Act.
