NC Digital Asset and Stablecoin Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 1029
Committee Substitute Favorable 5/12/26
Committee Substitute #2 Favorable 6/9/26

Short Title: NC Digital Asset and Stablecoin Act. (Public)
Sponsors:
Referred to:
April 22, 2026
*H1029-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE NORTH CAROLINA DIGIT AL ASSET AND STABLEC OIN 2
ACT, AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON 3
BLOCKCHAIN AND DIGITAL ASSETS. 4
The General Assembly of North Carolina enacts: 5
6
PART I. DIGITAL ASSET FINANCIAL ACT 7
SECTION 1.(a) Chapter 53 of the General Statutes is amended by adding a new 8
Article to read: 9
"Article 26. 10
"Digital Asset Financial Act. 11
"§ 53-441. Definitions. 12
The following definitions apply in this Article: 13
(1) Control. – A person has control if the pe rson satisfies the requirements of 14
G.S. 25-12-105. 15
(2) Custody of a digital asset . – The legal relationship in which a financial 16
institution holds digital assets on behalf of a customer as bailee or trustee by 17
maintaining possession or control of the digital assets and any associated keys, 18
such that the digital assets remain the property of the customer, are not assets 19
or liabilities of the financial institution, and are not available to satisfy claims 20
of the financial institution's creditors. 21
(3) Customer. – A person for which a financial institution provides digital asset 22
services, including a digital asset account holder or a person on whose behalf 23
the financial institution acts in a fiduciary capacity. 24
(4) Digital asset. – A natively electronic asset that confers economic, proprietary, 25
or access rights and is recorded or stored in a blockchain, cryptographically 26
secured distributed ledger, or similar technology. A digital asset is personal 27
property. 28
(5) Digital asset custody services. – The safekeeping, administration, control, or 29
custody of digital assets on behalf of customers by a financial institution, 30
including any of the following: 31
a. Holding, controlling, or maintaining access to private keys necessary 32
to transfer, encumber, or otherwise exercise control over digital assets 33
belonging to or benefiting a customer. 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1029-Third Edition
b. Maintaining digital assets in an omnibus, pooled, or segregated 1
account structure on behalf of one or more customers. 2
c. Exercising control over digital assets through any technical protocol, 3
smart contract, multi -signature arrangement, or contractual 4
mechanism that functionally restricts or directs the disposition of a 5
customer's digital assets. 6
(6) Digital asset services . – Any services involving digital assets offered by a 7
financial institution, including digital asset custody services, staking services, 8
and digital asset transaction services. 9
(7) Digital asset transaction services . – Services that facilitate the execution of 10
digital asset purchase or sale transactions on behalf of a customer. 11
(8) Exercise of an act of ownership interest. – Includes the following actions by a 12
customer relating to a digital asset account: 13
a. Conducting a transaction with digital assets in the account, including 14
buying or selling digital assets. 15
b. Depositing into or withdrawing from a digital asset account fiat 16
currency or other property , whether by a one -time transaction or a 17
recurring transaction. 18
c. Electronically accessing the digital asset account. 19
d. Conducting any activity with respect to another digital asset account 20
or any other property held with the same financial institution. 21
e. Taking any other action that reasonably demonstrates to the financial 22
institution that the customer knows that the digital asset account exists. 23
(9) Fiduciary capacity . – Acting with trust powers under State law to provide 24
digital asset services on behalf of a customer, including the discretionary 25
management or administration of digital assets subject to fiduciary duties. 26
(10) Financial institution. – A bank chartered under State law or a credit union 27
organized under State law. 28
(11) Keys. – A pair of cryptographic codes associated with a digital asset wallet, 29
consisting of a public key and a private key. The public key enables the receipt 30
of digital assets and the verification of digital signatures. The private key 31
enables the control, transfer, or management of digital assets within the wallet. 32
(12) Non-fiduciary capacity. – Providing digital asset custody services solely for 33
safekeeping, without discretionary authority to manage or transfer the assets 34
and with legal title and control of the assets remaining with the customer. 35
(13) Regulating authority. – Either of the following: 36
a. In the case of a State-chartered bank, the Commissioner of Banks. 37
b. In the case of a State-organized credit union, the Administrator of 38
Credit Unions. 39
(14) Slashing. – A penalty imposed by a blockchain protocol that results in the 40
forfeiture or reduction of staked digital assets or rewards due to validator 41
misconduct or failure. 42
(15) Staking. – Committing digital assets to a blockchain network to participate in 43
the network's operations by validating transactions, proposing and attesting to 44
blocks, and securing the network. 45
(16) Staking rewards . – Any interest, yield, or other compensation earned by a 46
customer through staking digital assets on a blockchain network. 47
(17) Subcustodian. – A third party that a financial institution uses to hold digital 48
assets on the financial institution's behalf as part of providing custody services 49
to a customer. 50
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 3
(18) Wallet. – A digital interface or physical device that stores digital assets or 1
private keys, enabling the owner to securely manage, transfer, and maintain 2
independent control over their digital assets. 3
"§ 53-442. Digital asset custody services. 4
(a) Notification. – A financial institution intending to offer digital asset custody services 5
shall notify the regulating authority in writing before initiating these services. The written notice 6
shall be provided to the regulating authority at least 60 days before the financial institution's 7
commencement of custody services and shall include any information required by the regulating 8
authority to evaluate the financial institution's plans, policies, and procedures for compliance 9
with this section. 10
(b) Fiduciary Capacity . – A financial institution shall not begin offering digital asset 11
custody services in a fiduciary capacity without first obtaining the written approval of the 12
regulating authority. In applying for approval, the financial institution shall demonstrate that it 13
has satisfied all requirements to exercise trust powers and that it has the necessary expertise, 14
policies, and procedures in place to safely conduct fiduciary digital asset custody services. The 15
regulating authority has the discretion to condition or limit the scope of a financial institution's 16
authority to engage in fiduciary digital asset custody services and may impose any supervisory 17
conditions deemed necessary to ensure the safety and soundness of the financial institution and 18
the protection of customer assets. Additionally, if a financial institution provides digital asset 19
custody services in a fiduciary capacity and uses a subcustodian for those assets, the financial 20
institution shall provide notice to the regulating authority of its use of a subcustodian for fiduciary 21
custody. 22
(c) Fiduciary and Non-Fiduciary Capacity. – A financial institution may directly provide 23
digital asset custody services to its customers and may provide digital asset custody services in 24
either a fiduciary capacity or a non-fiduciary capacity, subject to the following provisions: 25
(1) Fiduciary capacity. – A financial institution shall not provide digital asset 26
custody services in a fiduciary capacity unless it is authorized to exercise trust 27
powers under State law. A financial institution acting in a fiduciary capacity 28
shall exercise this authority in accordance with all applicable fiduciary duties 29
and standards, including those governing trustees, custodians, and agents 30
under State law. 31
(2) Non-fiduciary capacity. – A financial institution may provide digital asset 32
custody services in a non -fiduciary capacity without being authorized to 33
exercise trust powers. When acting in a non -fiduciary capacity, the financial 34
institution shall act solely as a custodian for safekeep ing purposes and shall 35
not exercise discretionary authority over the customer 's digital assets. The 36
financial institution may act only upon the written instructions of the customer 37
and shall not independently manage, transfer, or dispose of the digital assets. 38
(d) Customer Agreement and Disclosures. – A financial institution shall enter into a 39
written custodial agreement with each customer before undertaking digital asset custody services. 40
The custodial agreement shall specify whether the financial institution is acting in a fiduciary 41
capacity or a non -fiduciary capacity for that customer. The agreement shall also include the 42
following written disclosures in a clear and conspicuous manner: 43
(1) Digital assets held in custody by the financial institution are not deposits, 44
obligations, or other liabilities of the institution. 45
(2) Digital assets in custody are not insured by the Federal Deposit Insurance 46
Corporation (FDIC), the National Credit Union Administration (NCUA), or 47
any other federal or State deposit insurance or share insurance program. 48
(e) Pooled or Segregated Custody Permitted. – A financial institution may hold digital 49
assets of multiple customers in a pooled custody arrangement or may segregate digital assets by 50
individual customer, in accordance with its custodial agreements. Pooled custody is permitted so 51
General Assembly Of North Carolina Session 2025
Page 4 House Bill 1029-Third Edition
long as the financial institution maintains accurate records identifying each customer's interest in 1
the digital assets. A financial institution may segregate a customer 's digital assets in a separate 2
account or digital wallet upon a customer's request or as required by the custodial agreement or 3
other law. 4
(f) Asset Reserve Requirement. – A financial institution providing digital asset custody 5
services shall at all times maintain control over a quantity of each type of digital asset in its 6
custody that equals or exceeds the total quantity of that digital asset owed to customers or 7
required to be held on behalf of customers. In no event shall the financial institution hold less 8
than a one hundred percent (100%) reserve of each digital asset owed or attributable to its 9
customers, and the financial institution's aggregate holdings of each digital asset shall at all times 10
be equal to or greater than the total amount of that asset that the financial institution owes to its 11
customers. Pooled custody of assets, as provided in subsection (e) of this section, shall not relieve 12
the financial institution of the requirement to individually account for and fully reserve each type 13
of digital asset for the benefit of customers under this subsection. 14
(g) Independent Annual Audits. – A financial institution engaging in digital asset custody 15
services shall undergo an independent audit of its custodial activities and holdings at least once 16
every fiscal year. The audit shall be conducted by a qualified independent auditor and shall verify 17
that the financial institution's actual holdings of each digital asset exceed the amount of that 18
digital asset that the institution owes to or holds for customers. The financial institution shall 19
provide the results of each annual audit to the regulating authority within five days of receiving 20
the results and shall make the audit results , subject to redaction of sensitive or proprietary 21
information, available to its customers upon request. 22
"§ 53-443. Subcustody of digital assets. 23
(a) A financial institution may utilize one or more subcustodians to assist in providing 24
digital asset custody services to its customers. The engagement of a subcustodian does not require 25
a separate consent from the customer , so long as the use of subcustodians is disclo sed in the 26
customer's custodial agreement. The use of a subcustodian does not relieve the financial 27
institution of its duties as custodian, and th e financial institution remains responsible to the 28
customer for the custody of the digital assets. 29
(b) A financial institution may place digital assets into subcustody only with one of the 30
following entities: 31
(1) A bank chartered under the laws of this State, another state, or the United 32
States. 33
(2) A special purpose depository institution chartered under th e laws of another 34
state. 35
(3) A trust company or other company authorized under Article 24 of this 36
Chapter. 37
(c) A financial institution shall execute a written agreement with each subcustodian it 38
uses. Each agreement shall delineate the rights and responsibilities of the financial institution and 39
the subcustodian and require compliance with this section. The financial institution shall make a 40
subcustodial agreement available to the regulating authority for review upon request. 41
(d) A financial institution placing digital assets in subcustody shall at all times retain 42
control and custody of those assets. The subcustodial arrangement shall be structured so that the 43
financial institution remains the custodial recordholder of the assets on behalf of its c ustomers 44
and the digital assets remain the property of the financial institution's customers. 45
(e) For each digital asset held in subcustody, the financial institution shall require the 46
subcustodian to maintain at least a one hundred percent (100%) reserve of that asset by type. The 47
amount of each type of digital asset held by the subcustodian shall at all times equal or exceed 48
the amount of that asset credited to the financial institution's customers. Different types of digital 49
assets shall not be commingled for reserve purposes, and assets held by a subcustodian on behalf 50
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 5
of one financial institution shall not be commingled with assets held on behalf of any other 1
financial institution or person. 2
(f) A financial institution shall only utilize a subc ustodian that maintains insurance 3
coverage sufficient to protect against the loss of digital assets due to cybersecurity breaches, theft, 4
or other similar events. The financial institution shall ensure that the subcustodian 's insurance 5
remains in effect and adequate to cover the value of assets held in subcustody. 6
(g) Digital assets held in subcustody shall be included in the scope of the financial 7
institution's annual independent audits under G.S. 53-442(g). All records relating to digital assets 8
held in subcustody are subject to examination by the regulating authority to the same extent as 9
records relating to digital assets held directly by the financial institution. 10
"§ 53-444. Staking of digital assets. 11
(a) Regulatory Notification and Approval. – A financial institution shall notify the 12
regulating authority in writing of its intent to offer staking services at least 60 days before 13
initiating these services. The written notice shall include any information that the regulating 14
authority requires to evaluate the financial institution's plans, policies, and procedures for 15
conducting staking in a safe and sound manner. A financial institution shall not begin staking 16
digital assets in a fiduciary capacity on beha lf of a customer without first obtaining the written 17
approval of the regulating authority. 18
(b) Staking Services. – A financial institution may stake digital assets held in custody on 19
behalf of its customers. Staking services may be provided with respect to digital assets held in 20
either a fiduciary capacity or non-fiduciary capacity, subject to the requirements of this section. 21
Only if instructed by the customer, may a financial institution include a customer's digital assets 22
in its staking program. 23
(c) Customer Disclosures. – Before initiating staking services for any customer 's digital 24
assets, a financial institution shall provide the customer with a clear and conspicuous written 25
disclosure of the terms and conditions of the staking program, including the following: 26
(1) Risks of staking. – The key risks associated with staking, such as the potential 27
for loss of staked assets or rewards due to slashing or other network events, 28
and cybersecurity or operational risks inherent in the staking process. 29
(2) Lock-up periods. – Any applicable lock -up, unbonding, or notice period 30
before staked assets can be withdrawn or transferred and the implications of 31
this period for the customer's access to the customer's assets. 32
(3) Customer rights. – The customer's rights and obligations related to the staking 33
service, including the right to discontinue participation in staking at any time 34
and the entitlement to receive staking rewards earned on the customer's assets. 35
(4) Fees. – The amount or rate of any fees or commissions that the financial 36
institution deducts from staking rewards as compensation for providing the 37
staking service. 38
(d) Customer Ownership and Off-Balance Sheet Status. – A digital asset that a financial 39
institution stakes on behalf of a customer remains the property of the customer. Staked customer 40
assets, and any staking rewards associated with those assets, shall not be recorded as assets or 41
liabilities on the financial institution's balance sheet. The financial institution shall ensure that 42
staked assets are safeguarded and not subject to any lien, security interest, or claim of the 43
financial institution's creditors. A financial institution shall not encumber, hypothecate, or 44
otherwise use a customer 's staked assets for any purpose except for facilitating staking on the 45
relevant blockchain or distributed ledger and shall not expose the assets to risk of loss except to 46
the extent inherent in the normal operation of the staking process. 47
(e) Use of Subcustodians for Staking. – A financial institution may utilize one or more 48
subcustodians to facilitate the staking of digital assets on behalf of its customers. The financial 49
institution shall at all times retain control over the staked assets and maintain appropriate 50
oversight of the staking process. The use of a subcustodian for staking does not relieve the 51
General Assembly Of North Carolina Session 2025
Page 6 House Bill 1029-Third Edition
financial institution of its duties to the customer under this section, and the financial institution 1
remains responsible for ensuring compliance with all requirements of this section. A subcustodial 2
arrangement for staking shall be executed in a written agreement that delineates the rights and 3
responsibilities of the financial institution and the subcustodian. 4
(f) Reserve Requirements for Staked Assets. – In addition to complying with the reserve 5
requirements of this Article, a financial institution shall ensure that a sufficient portion of each 6
digital asset type remains unstaked or otherwise available to promptly meet customer withdrawal 7
requests, subject to any staking lock-up or unbonding periods disclosed to the customer pursuant 8
to subsection (c) of this section. 9
(g) Staking Rewards to Customers. – All rewards, yield, or other benefits earned from 10
the staking of a customer's digital assets shall accrue to the benefit of that customer. A financial 11
institution may deduct a reasonable fee or commission from staking rewards only if that fee has 12
been disclosed to the customer in advance in writing. Except as otherwise agreed in writing by 13
the customer, the financial institution shall credit all net staking rewards, after the deduction of 14
any disclosed fees, to the customer's account in the same type of digital asset that generated the 15
rewards. These credits shall be made within a reasonable period after the rewards are received or 16
become available to the financial institution. 17
(h) Audits, Risk Management, and Insurance. – A financial institution's staking activities 18
shall be included within the scope of its independent annual audits under G.S. 53-442(g). The 19
financial institution shall implement and maintain written internal policies and procedures to 20
effectively identify, monitor, and manage risks associated with staking, including operational 21
risks, cybersecurity threats, slashing, and other risks associated with stak ing services. The 22
financial institution shall maintain insurance coverage adequate to protect against potential losses 23
arising from staking activities, including losses attributable to slashing, cybersecurity breaches, 24
theft, or similar events, and shall e nsure this coverage remains in effect and sufficient to cover 25
the current value of assets staked on behalf of its customers. All records relating to the financial 26
institution's staking services shall be available for independent audit and examination by the 27
regulating authority, consistent with the treatment of non-staked custodial asset records. 28
"§ 53-445. Digital asset transaction services. 29
(a) Regulatory Notice. – A financial institution intending to engage in digital asset 30
transaction services under this section shall provide at least 60 days ' written notice of its intent 31
to the regulating authority. The financial institution may commence these services only after the 32
notice period has elapsed unless the regulating authority allows an earlier date. 33
(b) Fiduciary Capacity. – A financial institution may engage in digital asset transaction 34
services when acting in a fiduciary capacity on behalf of a customer, subject to the requirements 35
of this section. 36
(c) Customer Disclosures. – A financial institution shall disclose to its customer, before 37
or at the time of a digital asset transaction, the following disclosures in a clear and conspicuous 38
manner: 39
(1) The methodology or basis used to determine the execution price of the digital 40
asset transaction. 41
(2) Any spreads, fees, commissions, or other charges that will be applied to the 42
transaction. 43
(3) The expected time line for settlement of the transaction and for the digital 44
asset to be available in the customer's account. 45
(d) Customer Instruction or Discretionary Authority. – A financial institution shall 46
execute a digital asset transaction only if one or more of the following applies: 47
(1) The transaction is executed p ursuant to the express instruction of the 48
customer. 49
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 7
(2) The transaction is executed i n the exercise of discretionary investment 1
authority granted to the financial institution under the governing fiduciary 2
instrument or other law. 3
(e) Counterparties. – A financial institution shall facilitate digital asset transactions only 4
with counterparties who are also authorized to engage in digital asset transaction services under 5
this Article or other state or federal law. 6
(f) Prohibition on Proprietary Trading. – A financial institution engaging in digital asset 7
transaction services under this section shall act solely in a fiduciary capacity for the benefit of its 8
customers and shall not engage in proprietary trading of digital assets. No purchase or sale of a 9
digital asset shall be made for the financial institution's own account under the authority of this 10
section, and all transactions shall be solely for the account of, or benefit of, a customer. 11
(g) Use of Subcustodians and Execution Agents. – A financial institution engaging in 12
digital asset transaction services under this section may utilize subcustodians or third -party 13
execution agents to execute transactions on behalf of its customers. The financial institution may 14
delegate discretionary authority to these subcustodians or agents regarding the timing, sequence, 15
and venue of transaction execution. This delegation shall comply with the fiduciary 16
responsibilities of the financial institution. The financial institution shall perform due diligence 17
and mainta in continuous monitoring of every subcustodian or execution agent to ensure 18
compliance with this Article and the protection of digital assets. Delegation of authority under 19
this subsection does not relieve the financial institution of its fiduciary obligat ions or its 20
responsibility to comply with this Article. 21
(h) Custody of Assets Post-Transaction. – A financial institution that purchases a digital 22
asset under this section shall ensure that the asset is transferred into the financial institution's 23
custody as soon as commercially practicable after execution of the transaction. All digital assets 24
so acquired shall be held in custody in accordance with the fiduciary custody standards 25
established in this Article and maintained under the financial institution's control consistent with 26
its fiduciary obligations. 27
(i) Record Keeping and Oversight. – For each digital asset purchase or sale executed 28
under this section, the financial institution shall create and retain a record of the transaction, 29
including the date and time of execution; the type and amount of digital asset purchased or sold; 30
the price at which the transaction was executed; the identity of the counterparty ; any execution 31
agent used; and all fees, commissions, or spreads charged. These records shall be maintained for 32
at least five years and shall be made available to the regulating authority upon request or during 33
examination. 34
"§ 53-446. Anti-money laundering, cybersecurity, and other compliance requirements. 35
(a) Compliance. – A financial institution shall comply with all federal and State laws 36
governing its digital asset services. These laws include the federal Bank Secrecy Act (31 U.S.C. 37
§ 5311 et seq.) and its implementing regulations, customer due diligence requirements issued by 38
the U.S. Department of the Treasury 's Financial Crimes Enforcement Network, sanctions 39
regulations administered by the U.S. Department of the Treasury 's Office of Foreign Assets 40
Control (OFAC), and data security and privacy laws , such as the Gramm-Leach-Bliley Act (15 41
U.S.C. § 6801 et seq.) and its implementing regulations. 42
(b) Anti-Money Laundering Program. – A financial institution offering digital asset 43
services shall establish and maintain an anti -money laundering compliance program that is 44
risk-based and commensurate with the nature and scope of the financial institution's digital asset 45
services. The program shall include all of the following: 46
(1) A system of internal controls to ensure ongoing compliance with the Bank 47
Secrecy Act and other applicable anti-money laundering requirements. 48
(2) Independent testing for compliance to be conducted by qualified internal audit 49
personnel or an independent party. 50
General Assembly Of North Carolina Session 2025
Page 8 House Bill 1029-Third Edition
(3) Appropriate risk -based procedures for conducting ongoing customer due 1
diligence, including m onitoring of customer transactions and updating 2
customer information as necessary. 3
(c) Cybersecurity Program. – A financial institution offering digital asset services shall 4
implement and maintain a written cybersecurity program designed to ensure the security of the 5
financial institution's digital asset services systems and protect the confidentiality, integrity, and 6
availability of customer digital assets and related i nformation. The cybersecurity program shall 7
be commensurate with the financial institution's size and complexity and the sensitivity of its 8
operations and shall align with federal cybersecurity standards for institutions , including the 9
guidelines of the Fe deral Financial Institutions Examination Council (FFIEC) Information 10
Technology Examination Handbook and the framework established by the National Institute of 11
Standards and Technology (NIST). The program shall include administrative, technical, and 12
physical safeguards to protect against anticipated threats or hazards and unauthorized access to 13
or theft of customer assets or information. 14
(d) Incident Notification. – A financial institution offering digital asset services shall 15
notify the regulating authority of any material cybersecurity incident as soon as possible, but in 16
no event later than 72 hours after reasonably determining that the incident has occurred. This 17
notice shall provide a description of the incident and its likely impact on the financial institution 18
and its customers, in accordance with any notification procedures prescribed by the regulating 19
authority. For purposes of this subsection, a "material cybersecurity incident " means a 20
cybersecurity breach or event that materially compromises the security, confidentiality, or 21
integrity of the financial institution's information systems or the digital assets under its control. 22
(e) Record Keeping. – A financial institution offering digital asset services shall maintain 23
detailed records of its compliance efforts under this section, including all policies, procedures, 24
risk assessments, audit reports, and training materials related to its anti -money laundering and 25
cybersecurity programs. All records and supporting documentation shall be retained f or at least 26
five years and shall be made available for inspection by the regulating authority upon request or 27
during an examination. 28
(f) Program Oversight Personnel. – A financial institution offering digital asset services 29
shall designate qualified indivi duals responsible for overseeing the institution 's anti -money 30
laundering and cybersecurity program s. The designated anti -money laundering compliance 31
officer and the designated cybersecurity program officer shall have the expertise, authority, and 32
resources to administer their respective programs and to enforce compliance with all applicable 33
laws. A financial institution shall promptly report to the Commissioner the names and contact 34
information of these designated individuals and shall notify the Commissioner of any change in 35
these designations. 36
"§ 53-447. Prohibition on rehypothecation. 37
A financial institution shall not rehypothecate a customer's digital assets. 38
"§ 53-448. Unclaimed digital assets. 39
Digital assets held by a financial institution under this Article that are presumed abandoned 40
are subject to Article 4 of Chapter 116B of the General Statutes. For purposes of that Article, a 41
financial institution holding digital assets is a holder as defined in G.S. 116B-52, and the 42
customer is an apparent owner as defined in G.S. 116B-52. 43
"§ 53-449. Rulemaking. 44
The State Banking Commission and Credit Union Commission may adopt rules to 45
implement, clarify, and enforce the requirements of this Article, so long as no rule adopted under 46
this section imposes a requirement o n a digital asset activity that is more restrictive than 47
applicable federal law governing the same activity. These rules may include more specific 48
standards for anti-money laundering, cybersecurity, and customer due diligence programs. The 49
State Banking Commission and Credit Union Commission may also issue advisory guidance to 50
assist financial institutions in complying with this Article. 51
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 9
"§ 53-450. Federal parity for digital asset activities. 1
(a) A financial institution may engage in any digital asset activity that is authorized for 2
the institution under applicable federal law. To the extent a provision in this Article imposes a 3
requirement, condition, or limitation on a digital asset activity that is more restrictive than the 4
requirements imposed on that activity under applicable federal law, the federal requirement 5
governs. 6
(b) This section does not limit the regulating authority 's power to examine the financial 7
institution, to enforce State consumer protection laws of general applicability, or to take action 8
against unsafe or unsound practices under G.S. 53-451. 9
"§ 53-451. Enforcement and supervisory authority. 10
(a) Grounds. – In addition to the powers under Chapter s 53C and 54 of the General 11
Statutes, the regulating authority may exercise the enforcement powers set forth in this section, 12
if the regulating authority determines that a financial institution has done any of the following: 13
(1) Violated any provision of this Article or rule adopted or order issued under it. 14
(2) Engaged in any unsafe or unsound practice in connection with its digital asset 15
services. 16
(3) Operated in a manner that threatens the safety or security of a customer's 17
digital assets. 18
(b) Temporary Emergency Orders. – If the regulating authority determines that a 19
financial institution has engaged in any misconduct described in subsection (a) of this section 20
and this misconduct is likely to cause immediate and irreparable harm to its customers or the 21
public, the regulating authority may issue a temporary emergency order. This order may direct 22
the financial institution to immediately cease and desist from the activity and take any other 23
action necessary to prevent or mitigate the harm. A temporary emergency order is effective upon 24
service on the financial institution. A financial institution subject to a temporary emergency order 25
shall be given the opportunity for an expedited hearing. A financial institution has 10 days after 26
the issuance of a temporary emergency order to request a hearing. Upon receipt of the financial 27
institution's request, a hearing shall be held within 10 days of the request to determine whether 28
the order should be stayed, modified, or made permanent. If no hearing is requested within the 29
initial 10-day period, or if the financial institution fails to appear at the schedu led hearing, the 30
temporary emergency order remains in effect until the regulating authority either lifts it or 31
replaces it with a cease and desist order under subsection (c) of this section. 32
(c) Cease and Desist Orders. – The regulating authority may, after notice and an 33
opportunity for hearing, issue an order requiring a financial institution to cease and desist from 34
any activity described in subsection (a) of this section. The regulating authority shall serve upon 35
the financial institution a written notice describing the alleged misconduct and specifying a time 36
and place for a hearing to be held within 15 days of the notice, at which the financial institution 37
may present evidence or argument. If the regulating authority finds that the financial institution 38
has engaged in the alleged misconduct, the regulating authority may issue a cease and desist order 39
ordering the financial institution to immediately discontinue the misconduct and take affirmative 40
action, if necessary, to prevent its recurrence. 41
(d) Suspension or Revocation of Digital Asset Service Authority. – If, after notice and an 42
opportunity for hearing, the regulating authority determines that a financial institution has 43
engaged in any misconduct described in subsection (a) of this section , the regulating authority 44
may suspend or revoke the institution 's authority to provide digital asset services under this 45
Article. A notice of intent to suspend or revoke shall be served upon the financial institution, 46
stating the grounds for the action an d setting a hearing at which the financial institution may 47
show cause why its authority should not be suspended or revoked. A suspension or revocation 48
issued under this subsection becomes effective only after the financial institution has been given 49
notice, an opportunity for a hearing, and a written decision by the regulating authority affirming 50
the grounds for the suspension or revocation. 51
General Assembly Of North Carolina Session 2025
Page 10 House Bill 1029-Third Edition
(e) Civil Penalty. – In addition to or instead of an order described in this section, the 1
regulating authority may impose a civil penalty for any misconduct described in subsection (a) 2
of this section . For the first offense, the civil penalty shall not exceed five thousand dollars 3
($5,000) per violation. For each subsequent offense, the penalty shall not exceed te n thousand 4
dollars ($10,000) per violation. For the purpose of assessing civil penalties, each act or omission 5
is a separate violation. Aggregate technical or software errors resulting in no loss are a single 6
violation. The regulating authority shall give written notice to the financial institution of the 7
proposed civil penalty, identifying the misconduct and the amount of the penalty, and shall 8
inform the financial institution of its right to request a hearing on the civil penalty in accordance 9
with subsection (f) of this section. 10
(f) Hearing and Appeal Rights. – A financial institution subject to an enforcement action 11
under this section is entitled to a hearing of the regulating authority's decision. Upon request by 12
the financial institution, the Commissioner shall conduct an administrative hearing within 15 13
days of the request. The financial institution may present evidence and argument at the hearing, 14
and the regulating authority shall issue a written final decision or order base d on the record of 15
the proceeding. A bank may appeal a final decision or order of the Commissioner of Banks to 16
the State Banking Commission, in accordance with G.S. 53C-2-6, and a credit union may appeal 17
a final decision or order of the Administrator of Credit Unions to the Credit Union Commission, 18
in accordance with G.S. 54-109.92(k). The filing of an appeal operate s as an automatic stay of 19
the regulating authority's order, unless the reviewing commission, upon motion of the regulating 20
authority, finds that a stay would pose a substantial risk to the public interest. 21
(g) Notice and Cure. – Except in the case of a temporary emergency order issued under 22
subsection (b) of this section, the regulating authority shall, prior to ass essing a civil penalty 23
under subsection (e) of this section , provide the financial institution with a written notice of 24
violations. The notice shall specify the nature of the violation and provide the financial institution 25
with a period of not less than 30 days to cure the violations. No civil penalty shall be assessed if 26
the institution demonstrates to the satisfaction of the regulating authority that the violations have 27
been cured within the specified timeframe. 28
"§ 54-452. Confidentiality of records. 29
All applications, information, reports, and other confidential supervisory information, 30
including audit results and digital asset logs, obtained by the regulating authority under this 31
Article are not public records and shall be kept confidential as provided by G.S. 53C-2-7(b) and 32
G.S. 54-109.105." 33
SECTION 1.(b) G.S. 116B-52 reads as rewritten: 34
"§ 116B-52. Definitions. 35
In this Chapter:The following definitions apply in this Chapter: 36
(1) "Apparent owner" means a person whose name appears on the records of a 37
holder as the person entitled to property held, issued, or owing by the holder. 38
… 39
(2a) "Digital asset" is as defined in G.S. 53-441. 40
(2b) "Digital asset account " means an account, wallet, or other custodial 41
arrangement maintained by an apparent owner with a holder that may contain 42
one or more types of digital assets. 43
… 44
(3a) "Exercise of an act of ownership interest" is as defined in G.S. 53-441. 45
… 46
(5) "Holder" means a person obligated to hold for the account of or deliver or pay 47
to the owner property that is subject to this Chapter. 48
… 49
(6a) "Keys" is as defined in G.S. 53-441. 50
… 51
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 11
(11b) "Qualified custodian" means a person selected by the Treasurer to receive and 1
hold digital assets presumed abandoned under this Chapter that meets one or 2
more of the following criteria: 3
a. A federal or state-chartered bank, trust company, or special purpose 4
depository institution that is licensed or authorized to offer custody 5
services for digital assets. 6
b. A company possessing a license granted by this State or another state 7
that offers custody services for digital assets. 8
c. An entity that qualifies as a "financial institution" under 31 C.F.R. § 9
1010.100 and is subject to the anti -money laundering obligations of 10
the federal Bank Secrecy Act, 31 U.S.C. § 5311 et seq. 11
…." 12
SECTION 1.(c) G.S. 116B-53 reads as rewritten: 13
"§ 116B-53. Presumptions of abandonment. 14
… 15
(c) Property is presumed abandoned if it is unclaimed by the apparent owner during the 16
time set forth below for the particular property: 17
… 18
(15a) Property held in a digital asset account, five years after the earliest of the 19
following dates: 20
a. The date of the last exerci se of an act of ownership interest by the 21
apparent owner. 22
b. The date a second consecutive written or electronic communication 23
from the holder to the apparent owner by first-class mail , email, or 24
electronic messaging service is returned to the holder as unclaimed by 25
or undeliverable to the apparent owner. 26
c. The date the holder discontinued written and electronic 27
communications to the apparent owner. 28
The five-year period under this subdivision is tolled upon the apparent owner's 29
exercise of an act of ownership interest or any written, oral, or electronic 30
communication from the apparent owner to the holder. The holder shall 31
maintain a record of this communication. 32
…." 33
SECTION 1.(d) G.S. 116B-59 reads as rewritten: 34
"§ 116B-59. Notice by holders to apparent owners. 35
(a) Repealed by Session Laws 2017 -134, s. 2(a), effective October 1, 2017, and 36
applicable to property presumed abandoned on or after that date. 37
(a1) A holder of property that is presumed abandoned and that is either ( i) a security or 38
other equity interest in a business association, including a security entitlement under Article 8 of 39
Chapter 25 of the General Statutes, that is valued at twenty-five dollars ($25.00) or more or (ii) 40
property, other than a security or othe r equity interest in a business association, including a 41
security entitlement under Article 8 of Chapter 25 of the General Statutes, that is valued at fifty 42
dollars ($50.00) or more shall send written notice by first-class mail to the apparent owner not 43
more than 120 days or less than 60 days before filing the report required by this Article. The 44
holder shall exercise reasonable care to ascertain that it is sending the written notice to the 45
apparent owner's correct address. A holder may authorize a third pa rty to perform the duties 46
required by this subsection. Notwithstanding any third -party authorization, the holder bears 47
responsibility for a failure to comply with this section.The holder shall send notice by one or both 48
of the following methods: 49
General Assembly Of North Carolina Session 2025
Page 12 House Bill 1029-Third Edition
(1) If the holder, in the regular course of business, sends physical mail to the 1
apparent owner, sending written notice by first -class mail to the apparent 2
owner's last known mailing address. 3
(2) If the holder, in the regular course of business, sends electronic 4
communications to the apparent owner, sending notice by email, push 5
notification, text message, or other electronic communication method to the 6
apparent owner at the electronic address or through the communication 7
channel maintained in the holder's records for the apparent owner. 8
The holder shall exercise reasonable care to ascertain that the notice is directed to the apparent 9
owner's correct address, whether physical or electronic, and shall maintain a record of the notice, 10
regardless of how the notice is delivered. 11
(b) Repealed by Session Laws 2017 -134, s. 2(a), effective October 1, 2017, and 12
applicable to property presumed abandoned on or after that date. 13
(c) The written A notice to apparent owners required under this section must contain all 14
of the following: 15
(1) A statement that, according to the records of the holder, property is being held 16
to which the addressee appears entitled and the amount or description of the 17
property. 18
(2) The name, address, and contact information of the person holding the property 19
and any necessary information regarding changes of name and address of the 20
holder. 21
(3) The date the holder intends to submit the report required under this Article 22
and a statement that, if satisfactory proof of claim is not presented by the 23
owner to the holder within 30 days of that date, then property will be placed 24
in the custody of the Treasurer, to whom all further claims shall be directed. 25
(4) A statement that, once property is placed in the custody of the Treasurer, all 26
interest, dividends, income, and gains earned on the property will remain with 27
the Treasurer, even if the owner subsequently reclaims the property from the 28
Treasurer. 29
(d) With the written consent of the Treasurer, this section may be waived, in whole or in 30
part, for good cause shown and upon conditions and terms that are prescribed by the Treasurer. 31
(e) A holder may authorize a third party to perform the duties required by this section . 32
Nevertheless, the holder bears responsibility for a failure to comply with this section." 33
SECTION 1.(e) G.S. 116B-60 reads as rewritten: 34
"§ 116B-60. Report of abandoned property; certification by holders with tax return. 35
(a) A holder of property presumed abandoned shall file a report with the Treasurer in an 36
electronic format prescribed by the Treasurer concerning the property. Holders shall file an 37
electronic certification and verification in order to comply with subsection (f) of this section. A 38
holder may authorize a third party to perform the duties required by this subsection. 39
Notwithstanding any third -party authorization, the holder bears responsibility for a failure to 40
comply with this section. 41
(b) For amounts due to the apparent owner of property of the value of fifty dollars 42
($50.00) twenty-five dollars ($25.00) or more, more and for any amount due to the apparent 43
owner of property subject to G.S. 116B-53(c)(4), (5), (5a), or (15a), the report must be verified 44
and must contain the following, if known by the holder: 45
(1) Except with respect to a traveler's check or money order, full name, last known 46
address, social security number or taxpayer identification number, date of 47
birth, drivers license or state identification number, and email address of each 48
person who, from the records of the holder of the property, appears to be the 49
apparent owner of the property. 50
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 13
(2) A description of the property, the identification number, if any, and the 1
property amount. 2
(3) Repealed by Session Laws 2011-230, s. 4, effective October 1, 2011. 3
(4) In the case of an amount held or owing under an annuity or a life or 4
endowment insurance policy, the full name and last known address, social 5
security number or taxpayer identification number, date of birth, drivers 6
license or state identification number, and email address of the annuitant or 7
insured and of the beneficiary. 8
(5) The date, if any, on which the property became payable, demandable, or 9
returnable, and the date of the last transaction or communication with the 10
apparent owner with respect to the property. 11
(6) Other information that the Treasurer by rule prescri bes as necessary for the 12
administration of this Chapter. 13
(b1) With the exception of property subject to G.S. 116B-53(c)(4), 116B -53(c)(5), and 14
116B-53(c)(5a), G.S. 116B-53(c)(4), (5), (5a), or (15a), amounts due an apparent owner less than 15
fifty dollars ($50.00) twenty-five dollars ($25.00) may be reported in an aggregate amount 16
without furnishing any of the information required by subsection (b) of this section. 17
…." 18
SECTION 1.(f) Article 4 of Chapter 116B of the General Statutes is amended by 19
adding a new section to read: 20
"§ 116B-61.1. Delivery of abandoned digital assets. 21
(a) A holder of property held in a digital asset account that is presumed abandoned under 22
G.S. 116B-53(c)(15a) shall report the property to the Treasurer pursuant to G.S. 116B-60. If the 23
digital asset account contains digital assets and the holder has the necessary private key or other 24
means required to transfer the digital assets, the holder shall deliver the digital assets in their 25
native form to a qualified custodia n designated by the Treasurer. The holder shall provide the 26
Treasurer with proof of delivery upon request. 27
(b) If the holder does not have the necessary private key or is otherwise unable to transfer 28
the digital assets to the qualified custodian, the holde r shall maintain the digital assets until the 29
necessary key becomes available or the holder is otherwise able to transfer the digital assets to 30
the qualified custodian. If the holder later transfers the digital assets to the Treasurer, the holder 31
shall report the digital assets in subsequent reports filed under G.S. 116B-60. 32
(c) If the Treasurer determines that a reported digital asset cannot be accepted for custody 33
by the qualified custodian designated by the Treasurer, is of de minimis or nominal value, or that 34
the costs of custody, transfer, or administration would exceed the value of the digital asset, the 35
Treasurer may direct the holder to liquidate the digital asset and deliver the net proceeds to the 36
Treasurer. The Treasurer may also identify classes or types of digital assets that are exempt from 37
delivery or that are subject to liquidation upon reporting. The Treasurer is not liable for any loss, 38
income, or gain for digital assets liquidated under this subsection. 39
(d) A holder that delivers digital assets or pays proceeds to the Treasurer in good faith 40
pursuant to this section is relieved of all liability arising after the delivery or payment with respect 41
to the digital assets delivered or proceeds paid, in accordance with G.S. 116B-63." 42
SECTION 1.(g) Article 4 of Chapter 116B of the General Statutes is amended by 43
adding a new section to read: 44
"§ 116B-61.2. Staking of unclaimed digital assets. 45
(a) The Treasurer may stake digital assets held pursuant to this Article on one or more 46
blockchain networks, subject to both of the following conditions: 47
(1) The Treasurer shall maintain sufficient unstaked reserves of each digital asset 48
type to satisfy claims from apparent owners presenting proof of ownership, 49
taking into account any applicable lock-up or unbonding periods. 50
General Assembly Of North Carolina Session 2025
Page 14 House Bill 1029-Third Edition
(2) If an apparent owner makes a valid claim while the claimed digital assets are 1
staked and subject to a lock-up or unbonding period, the Treasurer shall notify 2
the claimant of the lock-up or unbonding period and shall promptly transfer 3
the digital assets or their equivalent value at the end of the period. 4
(b) All rewards, yield, or other benefits earned from st aking under this section shall 5
accrue to the benefit of the State." 6
SECTION 1.(h) G.S. 116B-65 reads as rewritten: 7
"§ 116B-65. Public sale of abandoned property. 8
… 9
(d) Digital assets delivered to the Treasurer or to a qualified custodian designated by the 10
Treasurer shall be mai ntained in their native form for a minimum period of three years after 11
delivery. Following the completion of the three -year holding period, the Treasurer may arrange 12
for the sale of the digital assets. 13
If the apparent owner of digital assets makes a claim during the period in which the digital 14
assets are still maintained in their native form, the Treasurer shall, at the election of the apparent 15
owner, either transfer the digital assets in their native form to a custodian selected by the apparent 16
owner or ar range for the sale of the digital assets and remit the net proceeds to the apparent 17
owner. 18
The Treasurer shall not sell a digital asset for less than the prevailing market price at the time 19
of sale. If a digital asset does not have a prevailing market price or the Treasurer does not have a 20
means of determining the prevailing market price, the Treasurer may sell the digital asset by any 21
commercially reasonable method. 22
After the expiration of the three -year holding period, a person making a claim is entitled to 23
receive the digital assets, if they still remain in the custody of the Treasurer, or the net proceeds 24
received from a sale, less any fees and expenses incurred in the sale." 25
SECTION 1.(i) G.S. 36F-2(10) reads as rewritten: 26
"(10) Digital asset. – An ele ctronic record in which an individual has a right or 27
interest. The term does not include an underlying asset or liability unless the 28
asset or liability is itself an electronic record. This term does not include a 29
digital asset, as defined in G.S. 53-441." 30
SECTION 1.(j) Holders shall not report or deliver digital assets under Article 4 of 31
Chapter 116B of the General Statutes until the first reporting cycle beginning on or after 18 32
months after this act becomes law. The Treasurer shall designate a qualified custodian and issue 33
reporting instructions for digital assets before this reporting cycle. 34
The initial report filed under G.S. 116B-60 for digital assets subject to 35
G.S. 116B-53(c)(15a) shall include all digital assets that would have been presumed abandon ed 36
during the 10 -year period immediately preceding the effective date of subsections (b) through 37
(h) of this section, as if G.S. 116B-53(c)(15a) had been in effect during that period. 38
SECTION 1.(k) Subsections (b) through (h) of this section become effect ive on or 39
after 18 months after this act becomes law. The remainder of this section is effective when it 40
becomes law. 41
42
PART II. NORTH CAROLINA STABLECOIN ACT 43
SECTION 2.(a) Chapter 53 of the General Statutes is amended by adding a new 44
Article to read: 45
"Article 27. 46
"North Carolina Stablecoin Act. 47
"§ 53-461. Short title. 48
This Article shall be known and may be cited as the "North Carolina Stablecoin Act." 49
"§ 53-462. Definitions. 50
The following definitions apply in this Article: 51
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 15
(1) Commission. – The North Carolina State Banking Commission. 1
(2) Commissioner. – The North Carolina Commissioner of Banks. 2
(3) Control. – A person has control of a stablecoin if the person satisfies the 3
requirements of G.S. 25-12-105. 4
(4) Custody of digital assets. – Defined in G.S. 53-441. 5
(5) Digital asset. – Defined in G.S. 53-441. 6
(6) Eligible reserve assets. – Liquid assets comprising only the following: 7
a. United States coins and currency, including Federal Reserve notes. 8
b. Demand deposits or other immediately withdrawable funds held in 9
accounts at insured depository institutions or insured credit unions. 10
c. United States Treasury bills, notes, or bonds with a remaining maturity 11
of 93 days or less. 12
d. Repurchase agreements with a maturity of seven days or less, the 13
underlying collateral of which consists solely of United States 14
Treasury securities with a remaining maturity of 93 days or less. 15
e. Reverse repurchase agreements with a maturity of seven days or less 16
that are fully collateralized by United States Treasury securities on an 17
overnight basis and cleared through a qualifying central counterparty 18
or equivalent secure mechanism. 19
f. Shares in money market funds that invest exclusively in assets 20
described in sub-subdivisions a. through d. of this subdivision. 21
g. Balances held at the Federal Reserve. 22
(7) Foreign entity. – An entity organized under the laws of a foreign country. 23
(8) GENIUS Act. – The Guiding and Establishing National Innovation for U.S. 24
Stablecoins Act, Pub. L. No. 119-27, as amended. 25
(9) Licensed stablecoin issuer. – A payment stablecoin issuer that is legally 26
incorporated or organized under the laws of the United States or any state and 27
holds a license issued under this A rticle; the term is equivalent to a state 28
qualified payment stablecoin issuer under federal law. 29
(10) Payment stablecoin. – A digital asset (i) that is designed or marketed to be 30
used as a means of payment or settlement, (ii) the issuer of which undertakes 31
to convert, redeem, or repurchase for a fixed amount of mon etary value, and 32
(iii) that is not legal tender, a deposit, or a security registered under federal 33
securities laws. 34
(11) Payment stablecoin issuer. – A person that issues a payment stablecoin. 35
(12) Permitted payment stablecoin issuer. – A licensed stablecoin issuer that is 36
licensed or authorized under this Article or a f ederally qualified payment 37
stablecoin issuer chartered or licensed pursuant to the GENIUS Act. 38
(13) Person. – An individual, partnership, corporation, limited liability company, 39
association, trust, or other legal entity. 40
(14) Primary federal payment stablecoin regulator. – A federal agency that is the 41
primary regulator of a category of permitted payment stablecoin issuers 42
pursuant to section 2(25) of the GENIUS Act. 43
(15) Principal off ice. – A principal place of business consist ing of at least one 44
enclosed room or building of stationary construction in which all of the books, 45
records, and fil es pertaining to the issuance of payment stablecoins issued 46
under this Article are maintained. 47
"§ 53-463. License or authorization requirement. 48
(a) Unlawful Issuance Without Authority. – No person shall issue, circulate, offer, or 49
redeem a payment stablecoin in North Carolina unless the person is a permitted payment 50
stablecoin issuer. 51
General Assembly Of North Carolina Session 2025
Page 16 House Bill 1029-Third Edition
(b) General License Requirement for Issuers. – A person with a consolidated total 1
outstanding issuance of payment stablecoins of not more than ten billion dollars 2
($10,000,000,000) that seeks to issue a payment stablecoin in this State shall obtain a license as 3
a licensed stablecoin issuer from the Commissioner unless the person is otherwise authorized to 4
issue a payment stablecoin. 5
(c) Authorization of Trust Companies. – The Commissioner may authorize a trust 6
company chartered in this State to issue payment stablec oins without obtaining a license under 7
this Article if the trust company submits an application to expand its business activities to include 8
the issuance of payment stablecoins. A State trust company authorized under this subsection shall 9
comply, on a cont inuing basis, with every operational, reserve, disclosure, redemption, and 10
consumer protection requirement of this Article and the rules adopted under it as though it were 11
a licensed stablecoin issuer. The trust company shall periodically report to the Commissioner, 12
and the Commissioner may initiate an examination. 13
(d) Reciprocity for State Qualified Issuers. – A state qualified payment stablecoin issuer 14
licensed by and subject to supervision of another state payment stablecoin regulator that has filed 15
a current certification of substantial similarity under the GENIUS Act may issue payment 16
stablecoins in this State without obtaining a separate license, so long as the issuer gives written 17
notice to the Commissioner and complies with this Article and with the consumer protection laws 18
of this State. 19
(e) Insured Depository Institutions and Insured Credit Unions. – The following 20
provisions apply for specific issuers and institutions: 21
(1) Subsidiary issuance. – A State chartered insured depository institution or State 22
chartered insured credit union may issue payment stablecoins only through a 23
subsidiary that is a licensed or authorized stablecoin issuer unless the 24
institution obtains direct issuance approval und er subdivision (2) of this 25
subsection. 26
(2) Direct issuance approval. – The Commissioner may, upon application, 27
authorize a State chartered insured depository institution or State chartered 28
insured credit union to issue payment stablecoins in its own name i f the 29
Commissioner finds that both of the following apply: 30
a. The institution has received written approval from its primary federal 31
banking regulator to engage in payment stablecoin activities. 32
b. The institution will comply, on a continuing basis, with every 33
operational, reserve, disclosure, redemption, and consumer protection 34
requirement of this Article and the rules adopted under it as though it 35
were a licensed stablecoin issuer. 36
The institution shall periodically report to the Commissioner, and the 37
Commissioner may initiate an examination. 38
(3) Federal and State parity. – Nothing in this subsection relieves an institution or 39
its subsidiary of any requirement imposed by its primary federal banking 40
regulator or limits the Commissioner 's authority to enforce State consumer 41
protection laws pursuant to section 7(f) of the GENIUS Act. 42
(f) Foreign Entity. – The following provisions apply to a foreign entity: 43
(1) Permitted pathways. – An entity organized under the laws of a foreign country 44
shall not offer or issue payment stablecoins to persons in this State unless 45
either of the following applies: 46
a. The entity has incorporated or organized a subsidiary or affiliate in the 47
United States and that subsidiary or affiliate has obtained either a 48
provisional license issued under subdivision (2) of this subsection or a 49
full license as a licensed stablecoin issuer under this Article and has a 50
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 17
principal office in the United States. The principal office shall not be 1
located at an individual's home or residence. 2
b. The entity is registered with the Office of the Comptroller of the 3
Currency pursuant to section 18 of the GENIUS Act and the Secretary 4
of the Treasury has determined that the entity 's home country 5
regulatory framework is comparable. 6
(2) Provisional license. – Upon determining that a license application submitted 7
under G.S. 53-464 is complete, the Commissioner may issue a provisional 8
license authorizing limited issuance for a period not exceeding six months, 9
renewable once, subject to conditions the Commissioner prescribes to protect 10
consumers. 11
(3) Expedited review. – The Commissioner shall approve, provisionally license, 12
or deny an application submitted under G.S. 53-464 within 120 days after the 13
application is deemed complete unless the applicant consents to an extension. 14
(4) Technical assistance. – The Commissioner shall publish application guidance 15
and shall offer pre -filing meetings to assist prospective applicants in 16
understanding the requirements of this Article. 17
(5) Effect of license. – A foreign entity, or its United States subsidiary or affiliate, 18
that holds a provisional license or a full license issued under thi s Article is 19
deemed a permitted payment stablecoin issuer for the duration of the license 20
and may offer or issue payment stablecoins to persons in this State subject to 21
the terms of the license. 22
(6) Wind-down authority. – The Commissioner may grant a trans itional 23
exemption from this subsection to a foreign entity, not exceeding 12 months, 24
solely to facilitate orderly compliance or to wind down. 25
"§ 53-464. Licensing of issuers, application, and qualifications. 26
(a) Authority of Commissioner. – The Commissioner shall do the following: 27
(1) Administer a licensing program for payment stablecoin issuers, issue licenses, 28
conduct oversight, and issue orders necessary to implement and enforce this 29
Article. 30
(2) Each year on the date prescribed by the Secreta ry of the Treasury, the 31
Commissioner shall file the certification of substantial similarity required by 32
section 4(b)(3) of the GENIUS Act and shall maintain objective criteria for 33
that certification. 34
(b) Eligible Applicants. – The following are eligible applicants for an issuer license: 35
(1) A corporation or limited liability company organized under the laws of any 36
state or of the United States that is neither an insured depository institution 37
nor an insured credit union may a pply for a license as a licensed stablecoin 38
issuer. 39
(2) An insured depository institution or insured credit union chartered in this State 40
may elect to apply for a license under this section and, upon licensure, shall 41
comply with all provisions of this Article that apply to a licensed stablecoin 42
issuer. 43
(3) A United States subsidiary or affiliate of a foreign organized entity that 44
satisfies G.S. 53-463(f). 45
(c) Commissioner's Participation in Nationwide Registry. – The Commissioner may 46
participate in the Nationwide Mortgage Licensing System and Registry also known as the 47
Nationwide Multistate Licensing System and Registry, including the State Examination System 48
and any other electronic or successor systems developed and maintained by the Conference of 49
State Bank Supervisors for the licensing, registration, and supervision of persons under this 50
Article, pursuant to 12 U.S.C. § 5102(6) and 12 C.F.R. Part 1008. The Commissioner may 51
General Assembly Of North Carolina Session 2025
Page 18 House Bill 1029-Third Edition
establish relationships or contracts with the Nationwide Multistate Licensing System and 1
Registry or other persons designated by it to collect and maintain re cords and process fees. For 2
the purpose of participating in the Nationwide M ultistate Licensing System and Registry, the 3
Commissioner may waive or modify, in whole or in part, any or all of the requirements as 4
reasonably necessary to participate in the Nationwide Multistate Licensing System and Registry. 5
(d) Application Contents. – An applicant shall apply through the Nationwide Mortgage 6
Licensing System and Registry on a form acceptable to the Commissioner and include , at a 7
minimum, the following: 8
(1) Legal name, any assumed business names, principal office address, mailing 9
address, email, social security or taxpayer identification number, and form and 10
jurisdiction of organization. 11
(2) Identities and background information for each director, executive officer, and 12
person owning ten percent (10%) or more of voting power. Background 13
information shall include, at a minimum, all of the following: 14
a. Business history. 15
b. A description of any injunctions or administrative orders by a state or 16
federal authority to which the person is or has been subject. 17
c. Any conviction, within the past 10 years, of a misdemeanor involving 18
any fraud, false statement or omission, any theft or wrongful taking of 19
property, bribery, perjury, forgery, counterfeiting, extortion, or 20
conspiracy to commit any of these offenses, or involving any financial 21
service or business related to financial services. 22
d. Any felony conviction. 23
(3) A business plan describing the proposed payment stablecoin, technology 24
platform, markets served, and risk management framework. 25
(4) Policies demonstrating t he applicant 's ability to comply with the reserve, 26
redemption, disclosure, anti -money laundering, sanctions compliance, 27
operational risk, cybersecurity, and business continuity requirements of this 28
Article. 29
(5) Evidence of financial resources and capitalization sufficient to operate in a 30
safe and sound manner and meet the capital and liquidity standards issued by 31
the Commissioner under subsection (h) of this section. 32
(6) A detailed description of the organizational structure of the applicant, 33
including the identity of parent companies or subsidiaries, and the disclosure 34
of any parent company or subsidiary that is publicly traded on a stock 35
exchange. 36
(7) The applicant's consent to a federal and State criminal history record check 37
and a set of the applicant's fingerprints in a form acceptable to the 38
Commissioner. In the case of an applicant that is a person other than an 39
individual, each individual who has control of the applicant shall consent to a 40
federal and State criminal history record check an d submit a set of that 41
individual's fingerprints pursuant to this subdivision. 42
(8) A copy of the applicant's most recent audited financial statement prepared in 43
accordance with generally accepted accounting principles, including the 44
balance sheet, statement of income or loss, statement of changes in 45
shareholder equity, if applicable, statement of changes in fin ancial position, 46
and the applicant's audited financial statements for the immediately preceding 47
two-year period. However, if the applicant is a wholly owned subsidiary of a 48
corporation, the applicant may submit either the parent corporation 's 49
consolidated audited financial statements for the current year and for the 50
immediately preceding two-year period or the parent corporation's Form 10K 51
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 19
reports filed with the United States Securities and Exchange Commission for 1
the prior three years instead of the applicant 's financial statements. If the 2
applicant is a wholly owned subsidiary of a corporation having its principal 3
place of business outside the United States, similar documentation filed with 4
the parent corporation 's non -United States regulator may be submitted to 5
satisfy this subdivision. 6
(9) Copies of all filings, if any, made by the applicant with the United States 7
Securities and Exchange Commission, or with a similar regulator in a country 8
other than the United States, within the year preceding the date of filing of the 9
application. 10
(10) Any additional information the Commissioner requires. 11
(e) Standards for Approval. – The Commissioner shall approve an application only upon 12
finding all of the following: 13
(1) The applicant possesses capital and liquidity not less than the minimum 14
standards issued under subsection (h) of this section and adequate for its risk 15
profile. 16
(2) The applicant can maintain eligible reserves equal to one hundred percent 17
(100%) of outstanding payment stablecoins and can honor redemptions at par 18
on demand. 19
(3) The applicant has adopted effective programs for compliance with the Bank 20
Secrecy Act , 31 U.S .C. § 5311 et seq., anti-money laundering, sanctions 21
screening, operational risk, cybersecurity, and business continuity. 22
(4) The applicant's officers, directors, and principal owners have the competence, 23
experience, and integrity to operate the business in a safe, sound, and lawful 24
manner. 25
(5) That neither the applicant nor any controlling person is identified on the 26
Specially Designated Nationals and Blocked Persons List prepared by the 27
Unites States Department of the Treasury and the United States Department 28
of State subject to Presidential Executive Order No. 13224, Blocking Property 29
and Prohibiting Transactions With Persons Who Commit, Threaten to 30
Commit, or Support Terrorism. 31
(6) Licensure will not adversely affect the safety a nd soundness of the financial 32
system of this State. 33
(f) Decision Period and Provisional License. – The Commissioner shall approve, 34
provisionally license, or deny a completed application not later than 120 days after deeming it 35
complete. The Commissioner may issue a provisional license for a period not exceeding six 36
months, renewable once, subject to conditions necessary to protect consumers. The 37
Commissioner may require additional information and may require the amendment of the 38
application in the course of the investigation. An applicant 's failure to furnish all required 39
information within 30 days after filing the application or within 30 days of a request by the 40
Commissioner for additional information may be considered an abandonment of the application. 41
In the course of the investigation, the Commissioner may conduct an on -site examination of the 42
applicant, the reasonable cost of which shall be borne by the applicant. An applicant may 43
withdraw a license application at any time before a decision is made on the initial license 44
application. Any licensing fees paid by the applicant are nonrefundable. 45
(g) Ongoing Obligations of Licensees. – A licensed stablecoin issuer shall do all of the 46
following: 47
(1) Maintain continuous compliance with this Article and rules adopted under it. 48
(2) File with the Commissioner a monthly certificate, signed by the chief 49
executive officer and chief financial officer, affirming that the issuer at all 50
General Assembly Of North Carolina Session 2025
Page 20 House Bill 1029-Third Edition
times maintained one -to-one eligible reserves during the preceding month , 1
along with the public reserve report required by G.S. 53-465. 2
(3) Obtain an annual examination of reserves by a registered public accounting 3
firm and provide the report to the Commissioner within 10 days of receipt. 4
(4) Provide the Commissioner with a copy of the licensee 's annual audited 5
statement of financial condition prepared in accordance with generally 6
accepted accounting principles not more than 120 days after the end of the 7
licensee's fiscal year. 8
(5) Provide the Commissioner not less than 30 da ys' prior written notice of any 9
change in control. 10
(6) Provide the Commissioner not less than 30 days ' prior written notice of any 11
action or circumstance that would cause the consolidated total issuance of 12
payment stablecoins issued by the licensee to exceed ten billion dollars 13
($10,000,000,000). Upon receiving this notice the Commissioner shall, within 14
60 days, submit a petition to the Secretary of the Treasury and the Comptroller 15
of the Currency under section 4(c)(2) of the GENIUS Act requesting that 16
primary prudential oversight of the issuer remain s with the State of North 17
Carolina. The licensee shall cooperate fully with the Commissioner and 18
provide any information the Commissioner deems necessary to support the 19
petition. Until the Secretary or the C omptroller issues a final determination, 20
the licensee remains subject to this Article. If the petition is denied, the 21
Commissioner shall coordinate with the appropriate federal regulator to 22
facilitate an orderly transition within the time frame prescribed by the 23
GENIUS Act. 24
(7) Renew its license annually on a date set by the Commissioner and pay any 25
required annual assessment. 26
(h) Capital, Liquidity, and Risk-Management Standards. – The Commission shall by rule 27
establish minimum capital requirements, liquidity and interest rate risk standards, and operational 28
risk and information technology risk standards for licensed stablecoin issuers. The standards shall 29
meet or exceed the requirem ents of section 4(a)(4) of the GENIUS Act and shall ensure the 30
issuer's ability to redeem payment stablecoins and operate in a safe and sound manner. 31
(i) Fees. – The Commission may by rule prescribe application, licensing, renewal, 32
examination, and supervision fees in amounts sufficient to cover the costs of administering and 33
enforcing this Article. 34
(j) Initial Application Fee. – Each application for initial licensure shall be accompanied 35
by a nonrefundable filing fee of two thousand five hundred dollars ($2,500). 36
(k) Reporting. – No later than 60 days after the calendar quarter has ended, licensees shall 37
file a quarterly call report in a form prescribed by the Commissioner through the Nationwide 38
Multistate Licensing System and Registry, which shall includ e the number and amount of 39
payment stablecoins issued. 40
(l) Annual Assessment. – For the purpose of meeting the cost of regulation under this 41
Article, each licensee shall pay to the Commissioner an annual assessment as provided in this 42
subsection. The annual assessment shall consist of a base amount of five thousand dollars 43
($5,000) for volumes of no more than one million dollars ($1 ,000,000) plus an addition al sum, 44
calculated on the payment stablecoins issued and outstanding reported by the licensee for the 45
previous calendar year. The cumulative assessment shall be calculated as follows: 46
47
Payment Stablecoins in U.S. Dollar Volume Per U.S. Dollar 48
$1,000,001 to $5,000,000 $0.0008 49
$5,000,001 to $10,000,000 $0.0006 50
$10,000,001 to $50,000,000 $0.00004 51
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 21
More than $50,000,000 $0.0000006 1
2
The Commissioner may collect the assessment provided for in this subsection annually or in 3
periodic installments as approved by the State Banking Commission. 4
(m) Annual Renewal. – All licenses issued by the Commissioner under this Article expire 5
annually o n December 31 following issuance or on any other date determined by the 6
Commissioner. A license may be renewed on or after November 1 of each year by complying 7
with the requirements of this section. The application for renewal shal l demonstrate that the 8
licensee continues to meet the initial minimum standards for licensure under this Article and has 9
paid all required fees and assessments. 10
(n) Late Renewal. – If a license is not renewed prior to the expiration date, then the 11
licensee shall pay five hundred dollars ($500.00) as a nonrefundable late fee. In the event a 12
licensee fails to obtain a reinstatement of the license prior to March 1, the Commissioner shall 13
require the licensee to comply with the requirements for the initial issuance of a license under 14
this Article. 15
"§ 53-465. Permissible activities; reserve and custody requirements. 16
(a) Permissible Activities. – A licensed stablecoin issuer may engage only in the 17
following activities and any activities directly related to these activities: 18
(1) Issuing payment stablecoins in exchange for United States dollars or other 19
eligible reserve assets. 20
(2) Redeeming payment stablecoins. 21
(3) Purchasing, selling, holding, and safeguarding eligible reserve assets backing 22
the payment stablecoins. 23
(4) Providing custodial or safekeeping services for payment stablecoins or the 24
associated cryptographic keys. 25
(5) If the issuer is a subsidiary of an insured depository institution or insured 26
credit union, providing custodial or safekeeping services for reserve assets on 27
behalf of the parent institution in connection with the stablecoin program. 28
(6) Any other activity the Commissioner expressly authori zes in writing as 29
directly incidental to the issuance or redemption of payment stablecoins. 30
(b) Prohibited Activities. – A licensed stablecoin issuer shall not do any of the following: 31
(1) Engage in commercial lending, securities dealing, or derivatives dealing using 32
any reserve asset or the proceeds thereof. 33
(2) Engage in proprietary trading of any asset that is not an eligible reserve asset. 34
(3) Purchase or hold, for its own account, any security or instrument issued by an 35
affiliate except on market terms permitted by the Commissioner. 36
(4) Condition the availability of any product or service on a customer's purchase, 37
holding, or use of a payment stablecoin. 38
(c) Reserve Requirements and Asset Management. – The following reserve and asset 39
management requirements apply: 40
(1) A licensed stablecoin issuer shall at all times maintain eligible reserve assets 41
having an aggregate nominal value not less than one hundred percent (100%) 42
of the outstanding payment stablecoins issued by it. 43
(2) The issuer shall monitor daily the value of its outstanding payment stablecoins 44
and the value of its eligible reserve assets. If reserves fall below one hundred 45
percent (100%), the issuer shall immediately notify the Commissioner and 46
restore full coverage without delay. Failure to restore reserves within five 47
business days is grounds for the summary suspension of any license issued 48
under this Article. 49
(3) Except as permitted in this Article, an issuer shall not pledge, hypothecate, 50
lend, or otherwise encumber any reserve asset. 51
General Assembly Of North Carolina Session 2025
Page 22 House Bill 1029-Third Edition
(d) Redemption Obligations. – The following redemption obligations apply: 1
(1) A licensed stablecoin issuer shall publicly disclose its redemption policy in a 2
clear and conspicuous manner. The redemption policy shall establish clear and 3
conspicuous procedures for the timely redemption of outstanding payment 4
stablecoins at par value of the U.S. dollar. 5
(2) A licensed stablecoin issuer shall publicly, clearly, and conspicuously disclose 6
in plain language all fees associated with purchasing or redeeming the 7
payment stablecoins. A licensed stablecoin issuer may change t hese fees so 8
long as it gives seven days' prior notice to holders of the payment stablecoin. 9
(3) An issuer shall honor redemption requests for any quantity of payment 10
stablecoins and shall not impose a minimum redemption threshold that is 11
unreasonable or that prevents an ordinary holder from redeeming. 12
(4) Failure to timely redeem a payment stablecoin after receipt of a complete 13
redemption request is grounds for the summary suspension of any license 14
issued under this Article. 15
(5) In the event of significant market stress or a redemption spike, as defined by 16
rule, the issuer may request that the Commissioner authorize a temporary 17
extension to the redemption period to facilitate orderly liquidation . The 18
Commissioner may grant the req uest if the Commissioner finds there is 19
significant market stress or a redemption spike and the issuer has given 20
advance notice to holders of the payment stablecoin describing the basis and 21
duration of the requested extension. Any extension granted under this 22
subdivision is subject to all of the following: 23
a. The extension shall not exceed five business days. 24
b. The Commissioner shall issue the extension by written order setting 25
forth specific findings of fact supporting the de termination of 26
significant market stress or a redemption spike and stating the duration 27
of the extension. 28
c. The written order shall be made available on the publicly accessible 29
website of the Commissioner no later than the close of the business on 30
the day the order is issued. The order shall remain publicly available 31
for not less than six months. 32
(e) Custody, Segregation, and Priority of Reserves. – Reserve assets shall be held in 33
custodial or trust accounts in the United States with insured depository institutions, insured credit 34
unions, State chartered trust companies that are approved to operate in the State by the 35
Commissioner, Federal Reserve Banks, or other custodians approved by the Commissioner to 36
hold reserve assets and shall be segregated from the issuer's operational funds and other property. 37
Reserve assets shall be held for the collective benefit of payment stablecoin holders . Payment 38
stablecoin holders hold equitable title to the reserve assets. Reserve assets shall not be treated as 39
property of the issuer. In any receivership, insolvency, or similar proceeding under State law , 40
payment stablecoin holders have a first priority perfected security interest in the reserve assets, 41
and those assets shall not be available to satisfy claims of the licensed stablecoin issuer's 42
creditors. 43
(f) Disclosure, Reporting, and Attestations. – The following requirements apply: 44
(1) Not later than 10 days after the end of each calendar month, a licensed 45
stablecoin issuer shall publish on its public website a report that states both of 46
the following: 47
a. The aggregate number of payment stablecoins outstanding. 48
b. The composition and total nominal value of the eligible reserve assets 49
backing those payment stablecoins, including, for each category, the 50
average remaining maturity and the geographic location of custody. 51
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 23
(2) The chief executive officer and the chief financial officer shall sign and file 1
with the Commissioner, on the same schedule, a certificate affirming that the 2
issuer maintained at least one hundred percent (100%) eligible reserve assets 3
during the preceding month. 4
(3) The licensed stablecoin issuer shall obtain an annual examination of its reserve 5
assets by an independent public accounting firm and file the report with the 6
Commissioner not later than 10 days after receipt or any shorter period 7
prescribed by federal regulation. 8
(4) The Commission may by rule require additional reports, including immediate 9
notice of large withdrawals or material changes in reserve composition. 10
"§ 53-466. Compliance with federal law governing interest, yield, and rewards. 11
(a) Compliance with Federal Law. – A licensed stablecoin issuer shall comply with any 12
applicable federal law governing the payment, provision, promise, or offering of interest, yield, 13
rewards, rebates, incentives, or other consideration in connection with a payment stablecoin. This 14
section does not create an independent State prohibition or authorization regarding those 15
practices. 16
(b) Definition. – For purposes of this section, "applicable federal law" means any statute 17
enacted by Congress or final rule published in the Federal Register that is binding on permitted 18
payment stablecoin issuers. This term does not include a proposed rule, notice of prop osed 19
rulemaking, guidance document, or supervisory letter that has not been finalized through 20
notice-and-comment rulemaking. 21
"§ 53-467. Anti-money laundering; customer identification; sanctions compliance. 22
(a) Bank Secrecy Act Status. – A licensed stablecoin issuer is a "financial institution" for 23
purposes of the Bank Secrecy Act, 31 U.S.C. § 5311 et seq., and the regulations of the U.S. 24
Department of the Treasury. 25
(b) Anti-Money Laundering Program. – Each licensed stablecoin issuer shall establish 26
and maintain a written, risk -based anti -money laundering program that satisfies 31 C.F.R. § 27
1022.210 and includes all of the following: 28
(1) Internal policies, procedures, and controls designed to prevent the issuer from 29
being used to facilitate m oney laundering, terrorist financing, proliferation 30
financing, or other illicit finance. 31
(2) Designation of a qualified compliance officer. 32
(3) Independent testing of the program at least annually, with the results reported 33
to senior management and made available to the Commissioner. 34
(c) Customer Identification Program. – A licensed stablecoin issuer shall implement and 35
follow a customer identification program that meets 31 U.S.C. § 5318( l) and 31 C.F.R. § 36
1010.312. At a minimum, the issuer shall obtain and verify the name, date of birth, address, and 37
other identifying information of each customer and shall retain those records for the period 38
required by federal regulation. 39
(d) Sanctions Compliance. – A licensed stablecoin issuer shall comply with all economic 40
sanctions laws administered by the Office of Foreign Assets Control. Compliance shall include 41
all of the following: 42
(1) Screening customers and transactions against all applicable sanctions lists at 43
onboarding and on a periodic basis. 44
(2) Blocking or rejecting transactions and freezing property as required. 45
(3) Filing any required reports with the Office of Foreign Assets Control in the 46
manner and time frame prescribed by federal regulation. 47
(e) Suspicious Activity and Currency Transaction Reports. – A licensed stablecoin issuer 48
shall file Suspicious Activity Reports and Currency Transaction Reports with the Financial 49
Crimes Enforcement Network as required by 31 C.F.R. Chapter X. 50
General Assembly Of North Carolina Session 2025
Page 24 House Bill 1029-Third Edition
(f) Record Keeping. – A licensed stablecoin issuer shall maintain all books, accounts, 1
customer identification, transaction records for the periods required by 31 C.F.R. Part 1022, and 2
other records and shall make those records available to the Commissioner upon request. 3
Maintenance of the documents required by this subsection in the form of any digital or electronic 4
medium constitutes compliance with this subsection so long as the records remain readily 5
convertible into legible, tangible documents and are treated as originals for the purposes of any 6
examination or investigation conducted pursuant to this Article. All records required to be 7
maintained shall be secured against unauthorized access and damage and may be maintained at 8
a location outside this St ate so long as they are made accessible to the Commissioner upon 9
request. 10
(g) Exemption from State Money Transmission Licensure. – The issuance of a payment 11
stablecoin is not money transmission under Article 16B of this Chapter. A licensed stablecoin 12
issuer is not required to obtain a State money transmitter license with respect to activities 13
conducted in compliance with this Article. A licensed stablecoin issuer may be required to obtain 14
a money transmitter license if it engages in the business of money transmission. 15
(h) Applicability of Other Anti-Money Laundering Statutes. – Nothing in this section 16
limits the applicability of other State anti -money laundering statutes or rules to a licensed 17
stablecoin issuer. 18
(i) Notice of Federal Enforcement Action. – A licensed stablecoin issuer shall notify the 19
Commissioner in writing not later than five business days after the issuer receives notice that it 20
is the subject of any federal investigation, consent order, or enforcement action relatin g to 21
anti-money laundering, customer identification, or sanctions compliance. 22
"§ 53-468. Supervision; examinations; reporting. 23
(a) Examination Authority. – The Commissioner may examine each licensed stablecoin 24
issuer at any time and shall conduct a full scope examination at least once every 24 months. The 25
Commissioner shall not conduct more than two examinations in any 12-month period unless the 26
Commissioner determines that extraordinary circumstances warrant additional review. 27
Examinations may be conducted on -site or remotely and shall address, at a minimum , the 28
following: (i) the issuer's financial condition; (ii) compliance with this Article and federal law; 29
(iii) reserve sufficiency; (iv) corporate governance and internal controls; (v) information 30
technology and cybersecurity safeguards; (vi) anti-money laundering, sanctions, and consumer 31
protection programs; and (vii) any other factor affecting safety, soundness, or consumer 32
protection. The Commissioner shall have full and immediate access to the issuer's books, records, 33
systems, officers, employees, and agents and may administer oaths and subpoena witnesses and 34
documents. 35
For purposes of investigating violations or complaints arising under this Article, or for the 36
purposes of examination, the Commissioner may review, investigate, or examine any licensee, 37
individual, or person subject to this Article as often as necessary in order to carry out the purposes 38
of this Article. The Commissioner may interview the officers, principals, persons with control, 39
employees, independent contractors, agents, and customers of the licensee or person concerning 40
their business. The Commissioner may direct, subpoena, or order the attendance of and examine 41
under oath all persons whose testimony may be required about the business or subject matter of 42
any examination or investigation and may direct, subpoena, or order the person to produce books, 43
accounts, records, files, and any other documents the Co mmissioner deems relevant to the 44
inquiry. The licensee shall respond to any information requests from the Commissioner within 45
20 days, or a lesser time if specifically requested for good cause, to do either of the following: 46
(1) Respond to inquiries from the Commissioner or the Commissioner's designee 47
regarding any complaints filed against the licensee that allege or appear to 48
involve any violation of this Article or any rule affecting payment stablecoin 49
issuance. 50
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 25
(2) Respond to and cooperate fully with notices from the Commissioner or the 1
Commissioner's designee relating to the scheduling and conducting of an 2
examination or investigation under this Article. 3
(b) Confidentiality and Information Sharing. – All applications, information, r eports, 4
audit findings, digital asset logs, and other confidential supervisory information are not public 5
records and shall be kept confidential as provided by G.S. 53C-2-7(b), except as specifically 6
authorized by this A rticle or by other law. The Commissioner may furnish confidential 7
supervisory information to, and accept confidential supervisory information from, the Board of 8
Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the 9
Federal Deposit Insurance C orporation, the National Credit Union Administration, the U.S. 10
Department of the Treasury, or any state or foreign financial services regulator pursuant to a 11
written information sharing agreement or memorandum of understanding , or as otherwise 12
provided by G.S. 53C-2-7(d). 13
(c) Annual Commissioner Certification. – Not later than 180 days after the initial 14
certification required by G.S. 53-464(a)(2), and annually thereafter, the Commissioner shall file 15
with the Secretary of the Treasury and the Comptroller of the Currency the written certification 16
described in section 7(d)(1) of the GENIUS Act. Each authorized or licensed stablecoin issuer 17
shall, upo n the Commissioner 's request, provide any reports, data, and attestations that the 18
Commissioner requires to complete the certification. 19
(d) Reports and Notices. – In addition to the monthly certificate and annual audit required 20
by G.S. 53-464 and the reserve disclosures required by G.S. 53-465, a licensed stablecoin issuer 21
shall file any periodic or ad hoc reports concerning its financial condition, risk exposures, 22
cybersecurity incidents, material litigation, or other matters that the Commission prescribes by 23
rule or the Commissioner prescribes by order. A licensed stablecoin issuer shall give the 24
Commissioner prompt written notice of any federal or State enforcement action or investigation 25
relating to anti-money laundering, sanctions, consumer protection, cybersecurity, or safety and 26
soundness matters. 27
(e) Books, Records, and Retention. – A licensed stablecoin issuer shall maintain 28
complete books, records, and digital asset logs of its payment stablecoin business for not less 29
than five years, or for a longer period if required by federal regulation, and shall produce those 30
records to the Commissioner upon request. It shall maintain th ese materials in an electronic 31
format reasonably accessible to the Commissioner upon request through secure transmission 32
methods, subject to applicable confidentiality protections and appropriate cybersecurity 33
safeguards. 34
(f) Change of Control and Cessation of Business. – Licenses issued pursuant to this 35
Article are not assignable without the approval of the Commissioner. A licensed stablecoin issuer 36
shall give not less than 30 days' prior written notice to the Commissioner of any proposed change 37
in control. The Commissioner may require an application for approval of the new controlling 38
party and shall apply the standards set forth in G.S. 53-464. A licensed stablecoin issuer that 39
intends to cease operations shall submit to the Commissioner, at least 30 days in advance, a 40
wind-down plan that provides for the orderly redemption of all outstanding payment stablecoins 41
and the protection of consumers. The issuer shall carry out the plan un der the Commissioner 's 42
supervision. 43
(g) Joint or Coordinated Examinations. – The Commissioner may conduct joint, alternate, 44
or coordinated examinations or enforcement actions with any federal banking agency or other 45
state or federal regulator having jurisdiction over a licensed stablecoin issuer or its affiliates. To 46
minimize operational friction and prevent duplicative efforts, the Commissioner shall, to the 47
extent practicable, rely on existing supervisory reports, independent audit reports, i ncluding 48
System and Organization Controls 1 and 2 reports, and examinations performed by federal 49
regulators or other state regulators. The Commissioner shall not initiate a redundant examination 50
or information request unless the Commissioner determines that existing materials are 51
General Assembly Of North Carolina Session 2025
Page 26 House Bill 1029-Third Edition
insufficient to assess compliance with this Article or the safety and soundness of a licensed 1
stablecoin issuer. 2
"§ 53-469. Enforcement; suspension; revocation. 3
(a) General Enforcement Authority. – The Commissioner may take any action necessary 4
or appropriate to enforce this Article, any rule adopted or order issued under it, or any condition 5
of a license and to protect payment stablecoin holders and the public. 6
(b) Cease and Desist Orders. – If the Commissioner determines that a person has violated 7
this Article or engaged in an unsafe or unsound practice, the Commissioner may issue a written 8
order requiring the person to cease and desist from the violation or practice and to take affirmative 9
corrective action. If the Commissioner finds that a violation or practice poses an immediate threat 10
to the public, the Commissioner may issue a summary cease and desist order effective upon 11
service. The respondent may request an expedited hearing, which shall be held within 15 days of 12
the request. 13
(c) Civil Penalties. – For each violation of this A rticle, or rule adopted or order issued 14
under it , the Commissioner may assess a civil penalty of up to the greater of one hundred 15
thousand dollars ($100,000) per violation or twice the amount of the benefit gained or loss 16
avoided by the violator. For a willful or repeat ed violation, the Commissioner may assess a 17
penalty of up to the greater of three hundred thousand dollars ($300,000) per violation or three 18
times the benefit gained or loss avoided by the violator. 19
(d) Restitution and Disgorgement. – The Commissioner may order any person that 20
violates this Article to make restitution to affected customers and to disgorge any ill-gotten gains. 21
(e) Removal and Prohibition of Individuals. – The Commissioner may suspend, remove, 22
or permanently prohibit from participation in the business of any licensed stablecoin issuer in 23
this State any officer, director, employee, or control ling individual who violates this Article, 24
engages in unsafe or unso und conduct, breaches a fiduciary duty , or does not mee t the 25
requirements of this Article. 26
(f) License Suspension, Conditioning, Denial, or Revocation. – The Commissioner may 27
suspend, condition, deny, or revoke a licen se for material or repeated violations, unsafe or 28
unsound practices, or failure to satisfy any requirement of this Article. 29
(g) Receivership or Conservatorship. – If the Commissioner determines that a licensed 30
stablecoin issuer is insolvent or in an unsafe condition that cannot be promptly corrected, the 31
Commissioner may petition the superior court for the appointment of a receiver or conservator. 32
The court may appoint (i) the Federal Deposit Insurance C orporation, if and to the extent 33
permitted by State law and accepted by the Corporation, (ii) a receiver appointed under Article 34
38 of Chapter 1 of the General Statutes, or (iii) any other person the court finds qualified, 35
including a receiver designated u nder Chapter 53C of the General Statutes . The receiver or 36
conservator shall marshal the licensed stablecoin issuer's reserve assets, protect payment 37
stablecoin holders, and carry out an orderly redemption or wind down under the supervision of 38
the court and the Commissioner. 39
(h) Judicial Enforcement. – The Commissioner may bring a civil action in Wake County 40
Superior Court to obtain an injunction, enforce any order, or collect any civil penalty imposed 41
under this Article. 42
(i) Due Process Procedures. – Except for summary cease and desist orders issued under 43
subsection (b) of this section, the Commissioner shall serve a written notice of charges and shall 44
provide the respondent an opportunity for a contested case hearing conducted in accordance with 45
Article 3 A of Chapter 150B of the General Statutes. A person aggrieved may appeal the 46
Commissioner's order to the State Banking Commission as provided by G.S. 53C-2-6(b) and 47
thereafter may seek judicial review under Article 4 of Chapter 150B of the General Statutes . 48
Filing a petition for judicial review does not stay the order unless a stay is granted by the 49
reviewing court. 50
General Assembly Of North Carolina Session 2025
House Bill 1029-Third Edition Page 27
(j) Unlicensed Activity; Criminal Penalty. – A person that issues or purports to issue a 1
payment stablecoin in this State without the required license or authorization is subject to a cease 2
and desist order and the civil penalties authorized under subsection (c) of this section. A person 3
that knowingly and willingly issues or purports to issue a payment stablecoin in this State without 4
the required license or authorization or in violation of a cease and desist order is guilty of a Class 5
1 misdemeanor. The Commissioner may also seek injunctive relief. 6
(k) False Statements. – A person that knowingly makes a false entry or statement in any 7
record or report required by this Article, or that knowingly submits false information to the 8
Commissioner, violates this Article and is subject to the civil penalties in subsection (c) of this 9
section and to any applicable criminal penalties. 10
(l) Private Civil Liability. – This Article does not create a private right of action. Nothing 11
in this Article limits any existing right of action under other law. 12
(m) Consent Orders. – The Commissioner may enter into a consent order with any person 13
to resolve a matter arising under this Article. A consent order has the same force and effect as an 14
order issued after a hearing. 15
(n) Criminal Referral. – If the Commissioner believes that conduct in violation of this 16
Article constitutes a crime, the Commissioner may refer the matter to the appropriate law 17
enforcement or prosecutorial agency for criminal prosecution, subject to G.S. 53C-2-7(d) and 18
(e). 19
"§ 53-470. Coordination with federal regulators and interoperability. 20
(a) Memoranda of Understanding and Joint Supervision. – The Commissioner may enter 21
into memoranda of understanding with any federal agency and may conduct joint, alternate, or 22
coordinated examinations and enforcement actions pursuant to G.S. 53-469 and sections 7(b) and 23
(c) of the GENIUS Act. 24
(b) Compliance with Federal Interoperability Standards. – Each licensed stablecoin issuer 25
shall implement and comply with any technical or operational interoperability standard or 26
guidance that the Secretary of the Treasury, the Board of Governors of the Federal Reserve 27
System, or any successor federal authority issues under section 11 of the GENIUS Act. The 28
Commission shall by rule adopt these standards as requirements under this Article, and t he 29
Commissioner shall enforce these standards. 30
(c) Interoperability Information. – The Commissioner may require a licensed stablecoin 31
issuer to submit reports or data concerning the interoperability of its payment stablecoin with 32
payment systems or other stablecoins as contemplated by section 8(c) of the GENIUS Act and 33
shall transmit this information to the Secretary of the Treasury upon request. 34
(d) Federal Reserve Master Account Coordination. – When a licensed stablecoin issuer 35
applies for a master account or other Federal Reserve payment service, the Commissioner shall 36
coordinate with the Federal Reserve to facilitat e the review and shall provide supervisory 37
information as permitted by law. Any guidance or coordination under this subsection is subject 38
to, and shall not conflict with, criteria issued by the Board of Governors pursuant to section 12 39
of the GENIUS Act. 40
(e) Federal Priority and Minimum Standards. – If a direct conflict arises between a 41
requirement of this Article and a requirement of federal law that applies to a licensed stablecoin 42
issuer, the federal requirement prevails to the minimum extent of the conflict. The Commissioner 43
shall interpret and apply this Article so that its requirements meet or exceed the minimum 44
standards established under federal law for payment stablecoin issuers at all times. 45
"§ 53-471. Rulemaking authority. 46
(a) The Commission may adopt rules to implement and enforce this Article; the rules 47
shall meet or exceed the coordination and interoperability standards contained in sections 8 and 48
11 of the GENIUS Act. All rules shall meet or exceed the minimum requirements of the GENIUS 49
Act and any successor federal law and shall take into account technological developments, 50
evolving industry practice, and supervisory experience. 51
General Assembly Of North Carolina Session 2025
Page 28 House Bill 1029-Third Edition
(b) The Commissioner may recommend a proposed rule , including a proposed 1
amendment to a rule, to the Commission. The Commission shall consider the Commissioner 's 2
recommendation at a regularly scheduled meeting before voting on adoption. 3
(c) The Commission shall periodically review and, whe n warranted, amend the rules 4
adopted under this Article to remain aligned with federal regulations and to respond to emerging 5
risks. 6
(d) The Commissioner may issue emergency rules when immediate regulation is 7
necessary to address a new risk. 8
"§ 53-472. Emergency powers. 9
In the event of a natural disaster or other national, regional, State, or local emergency, the 10
Commissioner may temporarily waive or suspend requirements for compliance with this Article 11
until the disaster or emergency declaration is lifted by the responsible governmental authority. 12
"§ 53-473. Commissioner's report. 13
The Commissioner shall provide a semiannual report to the State Banking Commission 14
regarding the status of all licenses issued , examinations conducted , and enforcement actions 15
taken under this Article during the reporting period. The report shall be provided in a manner 16
consistent with applicable confidentiality requirements for supervisory and examination 17
information." 18
SECTION 2.(b) Not later than six months after the effective date of this section, the 19
State Banking Commission shall, upon the recommendation of the Commissioner of Banks, 20
adopt rules addressing, at a minimum, the following: application procedures, capital and liquidity 21
standards, detailed reserve asset requirements, reporting formats, and any other matter that this 22
act assigns to the Commission for specification. 23
SECTION 2.(c) The Commissioner of Banks shall file its first certification under 24
G.S. 53-464(a)(2) within 12 months of the effective date of this section. 25
SECTION 2.(d) A foreign entity, as defined by G.S. 53-462, that, on the effective 26
date of this section, issues a payment stablecoin accessible by residents of this State and that does 27
not meet the requirem ents of G.S. 53-463(f)(1) shall, not later than 12 months after that date, 28
become a permitted payment stablecoin issuer under G.S. 53-463(f) or cease offering its payment 29
stablecoin in this State and shall provide holders of the payment stablecoin notice o f their 30
redemption rights. 31
SECTION 2.(e) This section becomes effective the earlier of January 18, 2027, or 32
120 days after the date on which the primary federal payment stablecoin regulators issue any 33
final regulations implementing the GENIUS Act. The Com missioner of Banks shall notify the 34
Revisor of Statutes of the issuance date of these regulations. 35
36
PART III. SEVERABILITY AND EFFECTIVE DATE 37
SECTION 3.(a) If any provision of this act, or the application of any provision of 38
this act to any person or circ umstance, is held invalid by a court of competent jurisdiction, the 39
remainder of the act and the application of its other provisions to other persons or circumstances 40
shall not be affected by it. The provisions of this act are declared to be severable. 41
SECTION 3.(b) Except as otherwise provided, this act is effective when it becomes 42
law. 43