Bill > H1029

This bill, the NC Digital Asset and Stablecoin Act, establishes a comprehensive regulatory framework for digital assets and stablecoins within North Carolina. It introduces new provisions for financial institutions offering digital asset custody services, which involves safekeeping digital assets like cryptocurrencies on behalf of customers, and digital asset transaction services, which facilitate the buying and selling of these assets. The act mandates specific disclosures to customers, requires financial institutions to maintain full reserves of digital assets in their custody, and mandates annual independent audits of these activities. It also addresses the use of subcustodians, which are third parties that financial institutions may use to hold digital assets, ensuring that the primary financial institution remains responsible to the customer. Furthermore, the bill permits financial institutions to engage in "staking," a process where digital assets are committed to a blockchain network to support its operations in exchange for rewards, provided customers are fully informed of the risks and agree to participate. The act also updates laws regarding unclaimed property to include digital assets, specifying how they should be handled if abandoned. A significant portion of the bill creates the "North Carolina Stablecoin Act," which regulates "payment stablecoins"—digital assets designed for payments that are backed by a fixed amount of monetary value. This part requires issuers of payment stablecoins to obtain a license, maintain reserves of eligible assets (like U.S. currency and short-term Treasury bills) equal to 100% of outstanding stablecoins, and adhere to strict redemption, disclosure, anti-money laundering, and cybersecurity requirements. The bill also outlines enforcement powers for regulators, including the ability to issue cease and desist orders, impose civil penalties, and suspend or revoke licenses, while also coordinating with federal regulators and establishing rules for stablecoin issuers to ensure market stability and consumer protection.