House committee substitute to the 1st edition makes the following changes.

Adds control and custody of a digital asset to the definitions provisions of the Digital Asset Financial Act (new Article 26 of GS Chapter 53) and the NC Stablecoin Act (new Article 27 of GS Chapter 53).

Makes the following further changes to the Digital Asset Financial Act. Modifies defined term digital asset custody services so that it now includes safekeeping, administration, or control of digital assets (was, digital assets and any associated cryptographic key), now described as including (1) holding, controlling, or maintaining access to private keys necessary to transfer, encumber, or otherwise exercise control over digital assets belonging to or benefiting a customer; (2) maintaining digital assets in an omnibus, pooled, or segregated  account structure on behalf of one or more customers; and (3) exercising control over digital assets through any technical protocol, smart contract, multi-signature arrangement, or contractual mechanism that functionally restricts or directs the disposition of a customer's digital assets. Sets five-day deadline from receiving the audit results for financial institution to provide the results of its annual independent audit of its custodial holdings and activities to the regulating authority (was, financial institution had to do so promptly) in GS 53-442. Removes licensed money transmitters as one of the entities that may serve as a subcustodian of digital assets under GS 53-443. Adds a trust company or other company authorized under Article 24 of GS Chapter 53. Makes technical corrections. Narrows the types of counterparties a financial institution can facilitate digital transactions with under GS 53-445 (digital transaction services) to those who are authorized to do so under new Article 26 or other state or federal law). Clarifies that the regulating authority (either the Commissioner of Banks if it’s a state-chartered bank or the Administrator of Credit Units if it’s a state-organized credit union) has the powers under GS Chapter 53C (regulation of banks) and GS Chapter 54 (cooperative organizations in addition to those set forth in new GS 53-450 (enforcement and supervisory authority under new Article 26). Removes authority to issue corrective action orders. Now requires a financial institution to request a hearing on a temporary restraining order within ten days after the order issues (was, just provided for a hearing to be held within that time). Requires hearing to be held within ten days of the request. Makes conforming change.

Removes the dollar amounts required to trigger the notice provisions for digital assets presumed abandoned under GS 116B-59 (notice by holders to apparent owners) that were based on property type, now setting one value of $25 or more trigger. Limits use of electronic delivery of that notice only to when the digital asset holder uses electronic communications in the regular course of business. Requires holder to maintain a record of how notice was delivered. Lowers the dollar amount triggering a holder of abandoned property’s report obligations under GS 116B-60 from $50 to $25 and includes any amounts due to an apparent owner of: (1) a security or other equity interest in a business association; (2) debt of a business association; (3) any dividend, profit, distribution, interest, redemption, payment on principal, cash compensation (including amounts from a demutualized insurance company), or other sum held or owing by a business association for or to shareholders and other security holders; and (4) digital assets. Makes conforming changes.  Removes requirement that a digital asset holder notify the State Treasurer if it is holding digital assets and does not have the necessary private key or is otherwise unable to transfer the digital assets to the qualified custodian in new GS 116B-61.1 (delivery of abandoned digital assets). Specifies that if that holder later transfers the asset to the Treasurer is has to report the digital asset in subsequent reports. Provides immunity to the Treasurer for any loss, income, or gain for digital assets liquidated. Narrows a digital asset holder’s immunity under new GS 116B-61.1 to the digital assets delivered or proceeds paid, in accordance with GS 116B-63. Enacts GS 116B-61.2 (staking of unclaimed digital assets), authorizing the Treasurer to stake unclaimed digital assets on one or more blockchain networks so long as the two specified conditions are met. Specifies that all rewards or other benefits earned from staking accrue to the benefit of the State.

Amends GS 116B-65 to no longer prohibit the sale of digital assets delivered to the Treasurer before the holding period expires. Also no longer specifies that nothing in the statute requires the Treasurer to liquidate digital assets upon the conclusion of the three-year holding period.

Exempts digital assets under new Article 26 from the Revised Uniform Fiduciary Access to Digital Assets Act (GS Chapter 36F). Makes technical and conforming changes to the act’s provisions pertaining to start-date for reporting or delivery of abandoned digital assets.