While most states are still figuring out what to do about cryptocurrency, North Carolina just went all-in on Bitcoin. In a move that’s either brilliant or crazy – depending on who you ask – state legislators passed Senate Bill 327, dubbed the “North Carolina Bitcoin Reserve and Investment Act,” in March 2025.
North Carolina boldly leaps into crypto, betting big on Bitcoin while other states remain cautiously on the sidelines.
The legislation isn’t playing around. It authorizes the State Treasurer to dump up to 10% of public funds into Bitcoin, while House Bill 92 gives the green light for throwing another 5% of retirement funds into digital assets. Blockchain security experts will help guide investment decisions to minimize risk. That’s a lot of zeroes being wagered on cryptocurrency’s future. But there’s a catch – Bitcoin has to maintain a market cap of at least $750 billion annually to qualify. The initiative will impact the state’s massive 129 billion dollar pension plan covering various public servants.
Senators Johnson and Overcash, the primary sponsors, aren’t just dipping their toes in the crypto pool – they’re doing a cannonball. The plan strictly focuses on Bitcoin, leaving other cryptocurrencies out in the cold. And forget about direct blockchain interactions; they’re keeping it simple with regulated exchange-traded products. With 21 million coins being the maximum supply cap, the state sees Bitcoin as a potentially scarce digital asset.
The whole operation will be overseen by the Governor and Council of State, with the Treasurer calling the shots on cryptocurrency investments. Digital wallets will handle secure storage, because nobody wants to lose the state’s Bitcoin in a cyber mishap.
North Carolina is positioning itself as the cool kid on the cryptocurrency block, becoming one of the first states to officially allocate public funds to Bitcoin. The legislation, signed into law after House approval on May 1, 2025, represents a massive shift in how states approach financial management.
It’s a bold strategy, Cotton. Let’s see if it pays off. The implementation isn’t expected to cause immediate waves in the crypto market, but it’s still a big deal. This marks the first major state-level Bitcoin reserve initiative of its kind, effectively giving cryptocurrency a government stamp of approval.
Whether other states will follow North Carolina’s lead or watch from the sidelines remains to be seen.
