Event Background and Core Content of the Bill
Recently, the North Carolina Senate in the United States proposed the SB327 bill, authorizing the state government to invest up to 10% of its public funds in Bitcoin. This proposal marks the first large-scale government intervention in the crypto asset field, drawing global attention. If passed, North Carolina will become the first state government in the US to adopt Bitcoin as a strategic reserve asset. With a general fund size of $9.5 billion, the 10% allocation cap implies that nearly $1 billion could flow into the Bitcoin market.
According to the bill’s details, investments must be made indirectly through compliant Bitcoin ETFs (such as BlackRock IBIT or Fidelity FBTC) and secured via multi-signature cold storage solutions. The state’s Department of Finance will cooperate with third-party custodians to publish a monthly audit report of the reserves, ensuring transparency. In addition, the bill stipulates that Bitcoin may only be sold in the event of a “severe financial crisis” and with the approval of the state legislature, attempting to balance risk control with long-term value appreciation goals.
Policy Drivers: Hedging Against Inflation and Crypto Strategic Layout
The core logic behind North Carolina’s promotion of SB327 is to cope with the pressure of the depreciating US dollar and to seize the first-mover advantage in the crypto industry. In recent years, the US inflation rate has consistently exceeded the Federal Reserve’s target, with the CPI rising 5.3% year-on-year in 2024, prompting local governments to explore non-traditional asset allocations. Bitcoin, with its anti-inflation properties and market capitalization (exceeding $2 trillion in 2025), has become the top choice.
At the same time, the state has passed several crypto-friendly policies in recent years, including banning the circulation of CBDCs and reducing taxes for mining companies. This bill is an extension of its crypto strategy, aiming to attract blockchain enterprises and capital to settle in the region.
The political background of the bill is also noteworthy. The legislative process is led by Republican lawmakers in North Carolina, echoing the “national Bitcoin reserve” plan proposed by the Trump administration. At the federal level, crypto supporters such as Senator Cynthia Lummis are pushing for policy relaxation, though progress remains slow, forcing the state government to take the initiative. This “bottom-up” legislative model may inspire other states to follow suit, potentially sparking a regional crypto policy competition.
Potential Impact: Market Boost and Regulatory Challenges
If enacted, SB327 would have a dual impact on the Bitcoin market and public finance. From a market perspective, the injection of nearly $1 billion could drive up the price of Bitcoin in the short term, especially since purchases via the compliant ETF channel would further consolidate an institution-led market structure. It is estimated that North Carolina’s allocation demand is equivalent to 12% of the current daily trading volume of Bitcoin ETFs, possibly triggering a liquidity siphon effect. Moreover, the government’s endorsement may enhance retail investor confidence and attract additional funds.
However, controversies and risks are also significant. Bitcoin’s high volatility could amplify public funds’ exposure to risk, particularly during the Federal Reserve’s interest rate hikes, as the correlation between crypto assets and traditional financial markets increases. Although the bill sets strict sell restrictions, its long-term holding strategy relies on the appreciation logic of Bitcoin, the feasibility of which has not yet been historically verified. On the regulatory front, the SEC might reexamine Bitcoin’s status as a security; if deemed a security, the state’s investment actions could face legal obstacles. Environmental groups have also criticized Bitcoin mining’s energy consumption, and the bill might encounter political resistance from various quarters.
Industry Insights: The Long-Term Significance of Government Involvement
North Carolina’s attempt offers a new paradigm for managing public funds worldwide. If SB327 is successfully implemented, it could drive Bitcoin’s transformation from a “high-risk speculative asset” to a “strategic reserve asset,” reshaping its role within the global financial system. For example, the state government plans to use part of its Bitcoin reserves for pilot projects in real-world asset tokenization (RWA), exploring on-chain government bond issuance or municipal bond collateralization. Such innovations might become the key bridge linking traditional finance with the Web3 ecosystem.
For the crypto industry, the entry of government funds will accelerate the process of compliance. Custodians, auditors, risk management service providers (such as Coinbase Custody, JuCoin institutional custody services) could gain opportunities for government collaboration, promoting industry standardization. At the same time, the transparency requirements of public fund management might force project teams to improve their governance frameworks and reduce market manipulation and fraud.
North Carolina’s SB327 is not only a policy experiment but also a touchstone for integrating crypto assets into the mainstream financial system. Its success or failure will have far-reaching implications for government fund allocation logic, the market positioning of Bitcoin, and even the evolution of the global monetary system. For investors, this case reveals the long-term value of balancing compliance with technological innovation and provides a practical reference for weighing policy benefits against risks.
Neason Oliver
