Summary
- North Carolina has a solid 10-year track record of investigating the use of, and putting in place, crypto- and blockchain-friendly legislation.
- There has been a good amount of bipartisan activity, with both sides of its Congress soundly debating and showing support for various bills.
- For more stories about crypto activity among the US states as well as countries worldwide, visit our Crypto in Action pages.
How crypto friendly is North Carolina
North Carolina has shown interest in digital assets and blockchain technology since 2015, and a range of attitudes have been displayed. In 2023 and 2024, two pieces of crypto legislation – House Bill 690 and House Bill 721 – made their way through the house, and senate.
Bill 690, No Central Bank Digital Currency Payments to the State Act, blocked the use of a central bank digital currency (CBDC) for payments to the state, and barred participation in Federal Reserve CBDC testing programs. The bill’s supporters suggested that it emphasized privacy, individual sovereignty, and market competitiveness.
There has been some politicking. In July 2024, then-Governor Roy Cooper, vetoed House Bill 690, on the basis that it was too “premature, vague, and reactionary” to sign into law. In September 2024, the state’s General Assembly overrode this veto.
Bill 721, the State Precious Metals Depository Study Act, led by Republican, Mark Brody, was introduced to create a state bullion depository. It also gave legislators the ability to study virtual currencies, particularly bitcoin. The focus was the process of holding, insuring, and liquidating virtual currency on the state’s behalf. The house and senate passed the bill in June 2023.
Earlier moves to shape crypto adoption included the Money Transmitters Act, 2016, and the North Carolina Regulatory Sandbox Act, 2021.
Timeline of crypto developments and regulation in North Carolina
2014 – The North Carolina Money Transmitters Act was expanded, with attempts made to clarify the requirements for entities involved in virtual currencies.
2016 – Following 16 months of deliberations, the North Carolina Money Transmitters Act established a regulatory framework and definition for virtual currencies.
2017 – Changes were made to North Carolina’s Revenue Law with a clause related to ‘non-coin currency’.
2018 – Clarifications were made to the state’s Money Transmitters Act, resulting in virtual currency exchanges having no requirement to maintain a reserve fund equalling their customer’s aggregate investment.
Changes to the act have, over the years, ensured that those exchanges operating within the state’s borders must adhere to the same standards as financial institutions: they require a license, and must follow all KYC and AML regulations.
The same year, the state’s Board of Elections and Ethics Enforcement office provided guidance related to the use of cryptocurrencies as political campaign contributions, deeming them not an in-kind contribution appropriate under North Carolina’s law.
Also in 2018, additional insurance requirements were imposed on virtual currency transmitters with relation to cybersecurity risks.
2019 – The North Carolina Blockchain Initiative (NCBI) was established. The state government and banking sector have both investigated utilizing blockchain technology, in the case of the former, viewing it as a possible means to boost both security and efficiencies.
2021 – Bill 624, the North Carolina Regulatory Sandbox Act, 2021, came into force, allowing for innovative financial technology and insurance products to be tested.
2023 – Bill 721, the State Precious Metals Depository Study Act, was passed, allowing legislators to study the ramifications of holding bitcoin as part of North Carolina’s state funds. The focus was on clarifying whether this would counter inflation and reduce volatility.
2024 – Bill 690, the No Central Bank Digital Currency Payments to the State Act, was passed, blocking the use of a central bank digital currency (CBDC) for payments to the state.
2025 – In February, Speaker of the House, Destin Hall, backed the introduction of the NC Digital Assets Investments Act (House Bill 92), which, if passed, will allow for the investment of public money into cryptocurrency.
Outlook
North Carolina has been active in the crypto and blockchain space for more than a decade, and continues to display an ongoing interest, which underscores its broadly supportive, often bipartisan stance. The state has gone some way in establishing the state as crypto friendly, displaying the regulations – and currently, the political will – to offer a favorable environment to the sector.
