North Carolina lawmakers just sent a loud signal that they want in on the digital money game, pushing through a sweeping bill that would let homegrown banks and credit unions handle stablecoins and other crypto while layering on strict consumer protections. The measure would open the door for state-chartered institutions to custody customer crypto, offer staking services and process digital asset transactions. In exchange, they would have to follow tight rules on reserves, audits, anti-money-laundering controls and cybersecurity.
On Tuesday, the House signed off on House Bill 1029 in a landslide: 113 votes in favor and just 2 against, then promptly shipped it across the hall to the Senate. The roll call was logged during a packed floor session and the bill is now waiting on committee review, according to the North Carolina General Assembly.
The bill is sponsored by Reps. Allen Chesser (R-Nash), Davis Willis (R-Union), Stephen Ross (R-Alamance) and Mike Schietzelt (R-Wake). Before the vote, Chesser pitched it as a way to keep local institutions from falling behind their federally chartered rivals. “What this bill does is primarily two things: It allows our state chartered and credit unions to participate in an industry that their federally chartered counterparts already get to participate in,” he said, according to the North State Journal.
What the Bill Would Do
House Bill 1029 is split into two main sections: the Digital Asset Financial Act, which focuses on how state-chartered institutions can handle custody and staking, and the North Carolina Stablecoin Act, which sets up licensing for payment stablecoins.
Under the Digital Asset Financial Act, banks and credit unions that decide to offer digital asset custody would have to maintain full one-to-one reserves for customer assets, submit to independent annual audits and notify regulators before they provide fiduciary services, according to the North Carolina General Assembly. The bill also blocks rehypothecation of customer assets, requires plain-English fiduciary disclosures and builds in detailed risk notices for staking and similar services.
Licensing for Stablecoin Issuers and Federal Alignment
The second major piece creates a state licensing system for payment stablecoin issuers. To qualify, issuers would need full one-to-one backing, monthly reserve certifications and periodic examinations by state regulators. Licensed firms would fall under the watch of the North Carolina Commissioner of Banks and could face enforcement actions that include fines and even criminal penalties, according to the North State Journal.
Lawmakers say they are trying to stay in step with Washington. The state framework is designed to mirror the federal GENIUS Act, which sits in federal law as a nationwide structure for payment stablecoins. The federal provisions are laid out in Legal Information Institute.
Why Now and What Comes Next
The timing is no accident. Across the country, states are racing to stake out their own digital-asset rules while federal regulators slowly hammer out the details. The bill analysis says Part II of House Bill 1029 would kick in on the earlier of January 18, 2027, or 120 days after federal payment-stablecoin regulators publish final rules under the GENIUS Act, according to the North Carolina General Assembly.
The House has already transmitted its message to the Senate, where the bill has been routed to the chamber’s rules committee for consideration, per the North Carolina General Assembly. Whether the bill keeps rocketing forward or slows down will depend on how senators handle committee hearings and amendments, and on how federal rulemaking unfolds.
If the Senate takes it up on the floor and the governor signs the final version, state regulators would start licensing stablecoin issuers and examining institutions that offer digital-asset services. The State Banking Commission would also develop detailed rules that could ultimately decide whether North Carolina becomes a magnet for stablecoin firms or just another jurisdiction trying to keep up.
For now, House Bill 1029 plants a flag: North Carolina wants to plug directly into the federal GENIUS framework while keeping a tight grip on reserves, audits and consumer safeguards.
