Blab Crypto
North Carolina Passes House Bill 1029 to Regulate Crypto Custody, Staking and Stablecoins
In a unanimous 115‑0 vote that underscored the state’s commitment to modern finance, North Carolina’s House cleared House Bill 1029. The legislation – dubbed the NC Digital Asset and Stablecoin Act – grants state‑chartered banks and credit unions the authority to hold customers’ digital assets, facilitate transfers, and offer staking services. At the same time, it introduces a licensing regime for entities that wish to issue, circulate, or redeem payment stablecoins within the state.
Introduced by Representatives Allen Chesser, David Willis, Stephen Ross and Mike Schietzelt, the bill creates a clear path for traditional financial institutions to expand into the rapidly evolving crypto landscape. Banks and credit unions will now be able to provide custody and staking, provided they comply with a set of stringent consumer‑protection requirements. Custody agreements must be written, customers must be informed that digital assets are not FDIC‑insured bank deposits, and institutions must maintain 100 % reserves for each type of digital asset owed. Annual independent audits and disclosures of fees and rewards will become mandatory.
Staking rewards belong to the customer, minus disclosed fees, and providers must manage risks such as cybersecurity, operational failures, lock‑up periods, and slashing. These safeguards mirror the rigor that banks already apply to their traditional products.
State Treasurer Brad Briner emphasized the bill’s role in modernizing banking policy. “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 Carolina Journal.
The stablecoin portion of the act ties state regulation to the federal GENIUS Act. No person may issue a payment stablecoin in North Carolina unless the issuer is licensed or otherwise authorized. Licensed issuers must maintain reserves, redeem stablecoins at par value, disclose fees, publish monthly reports, undergo annual reserve examinations, and comply with anti‑money‑laundering and customer‑identification programs. They must also adhere to sanctions rules and notify the commissioner of banks of certain federal enforcement actions. The framework will take effect no earlier than January or 120 days after federal regulators issue final GENIUS Act rules.
The North Carolina Blockchain + AI Initiative (NCB+AI) welcomed the bill. “House passage of H1029 is a major step forward for North Carolina’s digital asset economy,” the organization said in a statement to the 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.”
Beyond banks and stablecoins, the legislation grants the state treasurer authority to hold, liquidate, or stake unclaimed digital assets, ensuring that dormant holdings are managed responsibly.
House Bill 1029 fits into a broader national trend of state‑level regulation aimed at clarifying the legal status of digital assets. By aligning with the federal GENIUS Act, North Carolina seeks to create a predictable environment for financial institutions and stablecoin issuers while safeguarding consumers.
The bill now heads to the Senate for review. If passed, it will enable banks and credit unions to broaden their service offerings and compel stablecoin issuers to obtain a state license before operating. The timing of the framework’s enforcement will hinge on the final federal regulations under the GENIUS Act, which could push the effective date up to 120 days later.
In sum, House Bill 1029 establishes a regulatory structure that could position North Carolina as a crypto‑friendly banking hub and a stablecoin issuance center, all while embedding robust consumer‑protection and operational safeguards. Its future, however, rests on Senate approval and the completion of federal stablecoin rules.
Introduced by Representatives Allen Chesser, David Willis, Stephen Ross and Mike Schietzelt, the bill creates a clear path for traditional financial institutions to expand into the rapidly evolving crypto landscape. Banks and credit unions will now be able to provide custody and staking, provided they comply with a set of stringent consumer‑protection requirements. Custody agreements must be written, customers must be informed that digital assets are not FDIC‑insured bank deposits, and institutions must maintain 100 % reserves for each type of digital asset owed. Annual independent audits and disclosures of fees and rewards will become mandatory.
Staking rewards belong to the customer, minus disclosed fees, and providers must manage risks such as cybersecurity, operational failures, lock‑up periods, and slashing. These safeguards mirror the rigor that banks already apply to their traditional products.
State Treasurer Brad Briner emphasized the bill’s role in modernizing banking policy. “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 Carolina Journal.
The stablecoin portion of the act ties state regulation to the federal GENIUS Act. No person may issue a payment stablecoin in North Carolina unless the issuer is licensed or otherwise authorized. Licensed issuers must maintain reserves, redeem stablecoins at par value, disclose fees, publish monthly reports, undergo annual reserve examinations, and comply with anti‑money‑laundering and customer‑identification programs. They must also adhere to sanctions rules and notify the commissioner of banks of certain federal enforcement actions. The framework will take effect no earlier than January or 120 days after federal regulators issue final GENIUS Act rules.
The North Carolina Blockchain + AI Initiative (NCB+AI) welcomed the bill. “House passage of H1029 is a major step forward for North Carolina’s digital asset economy,” the organization said in a statement to the 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.”
Beyond banks and stablecoins, the legislation grants the state treasurer authority to hold, liquidate, or stake unclaimed digital assets, ensuring that dormant holdings are managed responsibly.
House Bill 1029 fits into a broader national trend of state‑level regulation aimed at clarifying the legal status of digital assets. By aligning with the federal GENIUS Act, North Carolina seeks to create a predictable environment for financial institutions and stablecoin issuers while safeguarding consumers.
The bill now heads to the Senate for review. If passed, it will enable banks and credit unions to broaden their service offerings and compel stablecoin issuers to obtain a state license before operating. The timing of the framework’s enforcement will hinge on the final federal regulations under the GENIUS Act, which could push the effective date up to 120 days later.
In sum, House Bill 1029 establishes a regulatory structure that could position North Carolina as a crypto‑friendly banking hub and a stablecoin issuance center, all while embedding robust consumer‑protection and operational safeguards. Its future, however, rests on Senate approval and the completion of federal stablecoin rules.
